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Gazprom in brief

Gazprom pursues the strategic objective of establishing itself as a leader among global energy companies

Home based in Russia, Gazprom is 50,002% state owned company, thus operating as a national oil and gas company.

The other 50% shares are traded in Moscow, London, Berlin and Frankfurt stock exchanges in the form of American Depositary Receipts.

On this floating equities stake, the market capitalization of Gazprom as at the end of 2011 amounted to USD 128 billion.

Being the fifth oil producer in Russia, Gazprom’s activities are dominantly turning around the natural gas and covering the whole natural gas value chain from geological exploration and production to distribution in passing by the gas processing, condensate separation, natural gas storage and transportation, up to the natural gas monetisation through the generation and marketing of heat and electric power.

Gazprom is the first utility company with the largest installed power generation capacity representing 17% of the consumption of energy in Russia.

Gazprom holds the world’s largest natural gas reserves and produces:

 – 15% of the global output

 – 78% of the Russian output.

Gazprom owns the world’s largest gas transmission network with the total length of 161 thousand kilometers.

50% of the Gazprom’s gas production stay in Russia for the domestic market while the other 50% are exported to more than 30 countries.

Gazprom is the only producer of liquefied natural gas (LNG) with a capacity representing 5% of the world production.

Even if the Shtokman project has been shelved for the time being, it gave the opportunity to Gazprom to measure all the challenges of the giant projects, in addition in the harsh Arctic conditions.

This experience helps Gazprom to move forward in other giant projects in the Yamal Peninsula, Arctic Shelf, Eastern Siberia and the Far East.

The cooperation developed with international oil companies helps now Gazprom to go global on oil and gas exploration and production.

Gazprom Key Figures

 – 2011 Revenues: $149,5 billion

 – 2010 Revenues: $116 billion

 – 2009 Revenues: $96,4 billion

 – 2011 Earnings: $43,3 billion

 – 2010 Earnings: $32,1 billion

 – 2009 Earnings: $25,6 billion

 – 2011 Capital Expenditure: $52,5 billion

 – 2010 Capital Expenditure: $35,8 billion

 – 2009 Capital Expenditure: $26,1 billion

 Gazprom Projects and Business Highlights

Gazprom set itself the strategic objective of establishing itself as a leader among global energy companies by entering new markets, diversifying its activities and ensuring reliable supplies.

To do so Gazprom intends to be a reliable, efficient and balanced supplier of oil, natural gas, electricity and their derivatives.

In this perspective, Gazprom priority is to diversify the gas transmission routes to Europe and reinforce the European energy security with projects such as Nord Stream and South Stream.

Nord Stream’s first string with the annual gas throughput of 27.5 billion cubic meters was commissioned on November 8, 2011. 

On Asia side Gazprom is leading the negotiations with China National Petroleum Company (Petrochina) to set the new rules for the trading of natural gas between Russia and China.

According to the Strategic Cooperation Agreement signed in 2004 and extended in June 2012, Gazprom is working with China National Petroleum Company (Petrochina) on the natural gas storage and distribution in China.

To support this partnership, Gazprom is working on the so called Eastern GasProgram to deploy an integrated natural gas production, transportation and supply system in Eastern Siberia and the Far East for export to China and other Asia-Pacific countries.

In addition Gazprom and China National Petroleum Company (Petrochina) will cooperate in the shale gas exploration and production in the Changning field, near by Yibin, in the Sichuan province.

The second priority for Gazprom is to diversify its markets and products in expanding its position of the liquefied natural gas (LNG) market.

Based on its experience accumulated in the Sakhalin projects, Gazprom is now looking toward the Yamal Peninsula for liquefied natural gas (LNG) projects in joint venture with Total.

Gazprom‘s third priority goes to energies diversification in targeting 100 million tons of oil equivalent by 2020 with projects in Iraq, Venezuela, Vietnam, India, and Bolivia.

Regarding its utilities activities, Gazprom intends to increase its installed capacity from 36 GW in 2010 to 44.8 GW in 2020.

In order to speed up its development, Gazprom signed a Cooperation Agreement with Rosneft to share good practices in offshore exploration – production and to reduce the costs for the onshore infrastructures.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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