Oil and oil-products

Alongside natural gas, Gazprom Export LLC sells abroad crude oil, petroleum products, liquefied petroleum gases (LPG), sulfur and a broad spectrum of gas processing products. 

 

Current Activity 

Gazprom Export’s product portfolio includes gas-derived sulfur, stable gas condensate (SGC), gas condensate distillate, benzene, diesel fuel, fuel oil, liquefied petroleum gas (LPG) and small-scale LNG (ssLNG), helium, carbon black, and other petroleum products and petrochemicals. 


Main producers are the Astrakhan gas refinery, the Orenburg gas refinery, the Surgut condensate stabilization plant (CSP), the Urengoy CTPP, the Sosnogorsk gas refinery and the Salavat oil refinery.

 In 2019, Gazprom Export LLC exported 6.6 mln t of liquid hydrocarbon and refined products, worth a total of around $1.72 bn. These commodities were sold under commission contracts with Gazprom, its subsidiaries, and independent producers of oil and gas chemistry products, on different supply terms including FCA, FOB, CPT.

In 2019, total sales rose by 37% in comparison to the previous year. 

Petroleum Products and Stable Gas Condensate

In 2019, Gazprom Export exported 2.65 mln t of petroleum products and SGC, worth a total of $1.29 bn The volume of exported products increased by 0.37 mln t or 16% compared to 2018 as a result of resumption of oil fuel sales produced at Astrakhan gas refinery, which amounted to 273 000 t, and the increase of gas condensate distillate sales by 100 000 tons. While the sales of other petrochemical products remained stable, the company expanded their range and sales geography. In 2019, the main export destinations for petrochemical products were European countries, China, the US, the Republic of Korea, Azerbaijan, Mongolia, and Georgia.

Sulfur

In 2019, Gazprom Export exported around 3.254 mln t of gas-derived, technical, and granulated sulfur, which is 47.85% more than in 2018.

Gazprom Group has retained its positions in the key markets of sulfur of Far Abroad countries (Brazil, Israel, the US, China) and Former Soviet Union Countries (Lithuania, Belorussia), and completely restored sales to Morocco, the key contract market for Russian sulfur. At the same time, over the year Gazprom further diversified the geography of exports by selling sulfur to customers in Salvador, Mexico, Benin and Jordan.


Efficiently using the positive market situations, timely concluding the deals together with switching to remote basis contracts, the company managed to increase the revenues to $207 mln despite the generally unfavorable conditions of the global sulfur market. The decline in prices had started in October 2018, and from October 2018 to December 2019, average prices of CFR Northern Africa and CFR Brazil fell almost threefold.

Helium

Gazprom Export LLC sells Gazprom Group’s helium to international markets. Today, the commercial helium is produced by the helium plant of Gazprom Dobycha Orenburg in gaseous and liquid forms in total volume of up to 5 mcm annually. 

Up to 80% of helium produced is consumed in the internal market of Russia and the rest is exported. The traditional export markets of gaseous helium are the Customs Union countries; of liquid helium – the EU countries and Turkey.

Liquefied Petroleum Gas

In 2019, Gazprom Export exports 139.8 thousand t of LPG. Poland, Hungary, Bulgaria, Latvia, Serbia and Estonia remained the traditional and main markets for Gazprom’s LPG.

Due to LPG sales diversification, the company also restored its exports to Finland.

As a part of preparation for exports from Amur gas processing plant, the company for the first time ever supplied LPG to China by rail. Moreover, a test cargo with LPG was delivered with rail and road transport via gas-filling station near Ussuriysk.

Petrochemical Products

In 2019, Gazprom increased exports of petrochemical products to 107.6 thousand t, which is by 39.4 thousand t more than in 2018, as a result of the conclusion of contract for styrene sales to Finland. Major consumer markets for the company’s petrochemical products are the EU, Turkey, India, as well as Northern and Southern American countries.

Activities under the European REACH Regulations

Gazprom Export and its Special Representative in the EU, Gazprom Marketing & Trading France, are continuing to work on tracking Gazprom Group products registered in compliance with the requirements of REACH/CLP Regulations. The companies perform constant monitoring of the updates in applicable legislation of the EU and other countries regarding chemical substances. The safety certificates are being updated in line with the new requirements, including classification and labeling; additional research into the component composition and physical-chemical properties in line with the European Chemical Agency (ECHA) standards is performed. New products are being registered reasonably in advance to ensure their reliable exports to the EU.

Due to the withdrawal of the UK from the EU and anticipated adoption of a new REACH – UK Regulation, the company is working on its strategy for registration of products that are sold to the UK.

Gazprom Export started its preparations for export products registration in compliance with China’s and Turkey’s regulations for chemical substances trade.

 

FUTURE AREAS OF ACTIVITY

Within its Eastern Gas Program, Gazprom aims to create gas production, transportation and processing facilities on the basis of Eastern Siberian gas fields. 

In accordance with plans to start exports of oil-gas condensate mixture and stable gas condensate from Chayanda gas condensate field via East Siberia–Pacific Ocean pipeline to China, Gazprom Export studies the oil and petroleum products markets of Asia Pacific Region.


Commissioning of the Amur gas processing plant in 2021, planned to reach its maximal production of 60 mcm of helium by 2026, will diversify Gazprom’s helium portfolio and turn the company into one of the leading helium supplier to global markets. The helium from Amur plant will be mainly exported. The main customers are expected to be Japan, China, the Republic of Korea, Taiwan and other countries of Asia Pacific Region.

Gazprom Export is working on helium and LPG marketing, as well as conclusion of long-term export contracts. Together with other companies and partners of Gazprom Group, it participates in creation of necessary logistic infrastructure that secure stable helium and LPG supplies to international markets. For helium logistics in Far East, a special center for cryogenic container preparation will be established. Gazprom Export actively participates in developing functional tasks for this special infrastructural facility.