Thursday, July 18, 2024
 
 

Gazprom says Power of Siberia, TurkStream to boost Russia's position as gas supplier

Despite the weather factor and growing LNG supplies to European countries, Gazprom’s pipeline exports to countries beyond the former Soviet Union, including China, were maintained near the record highs, Gazprom says.
GAZPROM
Elena Burmistrova, deputy chairman of the Gazprom Management Committee and director general of Gazprom Export, delivers a presentation at Gazprom’s 15th Investor Day in New York, US, 11 February 2020.

- Advertisement -

Russian gas monopoly Gazprom closely follows the ongoing developments and takes the necessary measures to mitigate a number of adverse factors affecting the suppliers today, Elena Burmistrova, deputy chairman of the Gazprom Management Committee and director general of Gazprom Export, said at Gazprom’s 15th Investor Day in New York on 11 February.
By commissioning its ambitious pipeline projects, for example Power of Siberia and TurkStream, Gazprom is further enhancing its position as the world’s largest supplier of natural gas, Burmistrova was quoted as saying in a Gazprom press release.
According to Gazprom, the company remains the leading exporter in Europe. Despite the weather factor and growing liquified natural gas (LNG) supplies to European countries, Gazprom’s pipeline exports to countries beyond the former Soviet Union, including China, were maintained near the record highs at 199.3 billion cubic metres in 2019. According to provisional data, Gazprom’s share in the gas consumption of Europe and Turkey stands at 35.6%.
Burmistrova described the tools being used by Gazprom to meet the new challenges and trends in the global gas market. These include the promotion of e-trading via the Electronic Trading Platform. More than 16.5 billion cubic metres of gas has been sold through the ETP since September 2018.
Burmistrova paid special attention to the issues of pricing and the export contract model, Gazprom said, adding that the company’s contract model offers favourable prices coupled with reliable and flexible supply conditions, which makes Russian pipeline gas the most competitive in the market. The pricing mechanism embedded in Gazprom’s export contracts can be easily adjusted to European market changes. Low operating costs, efficient gas pipeline routes, and Gazprom’s vast resources guarantee profitability even amid low prices, she said.
Famil Sadygov, deputy chairman of the Gazprom Management Committee, outlined the key results of the implementation of Gazprom’s financial strategy, stressing that Gazprom’s financial performance was consistent in the previous year despite unfavourable market conditions. According to estimates, the Group’s net profit in 2019 exceeded $21 billion, revenues surpassed $120 billion, and the free cash flow remained positive. Such results were produced, inter alia, through continuous optimisation of operating and investment costs, as well as rigorous cost control.
Gazprom said the company will continue on reducing operating costs, with the ultimate goal of bringing them down by 2% per year. In addition, a substantial contribution to Gazprom’s strong financial performance will come from the new and yet-to-be-implemented projects of the Company, namely Power of Siberia, TurkStream, Nord Stream 2, the Amur Gas Processing Plant, and theintegrated complex for gas processing and liquefaction in Ust-Luga. According to Gazprom’s estimates, these projects, when running at their full capacity, will add a total of $9 billion per year to Gazprom’s EBITDA.

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

Policies on Deforestation Show Europe’s Internal Splits

Former U.S. Secretary of State Henry Kissinger once famously...

NATO Summit: “Trump-proofing” Ukraine support while Biden appearances under a microscope

The July 9-11 NATO Summit was originally envisioned as...

Russia failing to replace lucrative European gas deliveries with sales to China

Russia’s attempts to build the Power of Siberia 2...

Astana SCO Summit reaffirms its growing geopolitical role

The 24th summit of the Council of Heads of...

Don't miss

Policies on Deforestation Show Europe’s Internal Splits

Former U.S. Secretary of State Henry Kissinger once famously...

NATO Summit: “Trump-proofing” Ukraine support while Biden appearances under a microscope

The July 9-11 NATO Summit was originally envisioned as...

Russia failing to replace lucrative European gas deliveries with sales to China

Russia’s attempts to build the Power of Siberia 2...

Astana SCO Summit reaffirms its growing geopolitical role

The 24th summit of the Council of Heads of...

Uzbekistan: A Key Player in the (Central Asian) Great Game

Uzbekistan has had considerable success in attracting billions of...

Russia failing to replace lucrative European gas deliveries with sales to China

Russia’s attempts to build the Power of Siberia 2 (PS-2) natural gas pipeline to China appear to be stalling despite repeated statements from Moscow...

Astana SCO Summit reaffirms its growing geopolitical role

The 24th summit of the Council of Heads of State of the Shanghai Cooperation Organization (SCO), chaired by Kazakhstan, took place on July 4...

Uzbekistan: A Key Player in the (Central Asian) Great Game

Uzbekistan has had considerable success in attracting billions of dollars of aid, concessional debt, and co-investment, which has helped transform the economy since 2017....

EU strengthens energy cooperation with Chile, Argentina

This week EU Energy Commissioner Kadri Simson visited Chile and Argentina to step up cooperation with these two countries in the energy field, with...

Jeffrey Sachs: three times a traitor

An economist with an international reputation, Professor Jeffrey Sachs has increasingly raised his profile in the world media. A U.S. citizen, he accuses his...

Japan, the Republic of Korea (ROK), and the U.S. condemn DPRK-Russia Cooperation

During his June 19-20 visit to Pyongyang, Russian President Vladimir Putin and North Korean leader Kim Jong Un signed a comprehensive strategic partnership treaty...

European election results show EU is at an inflection point

A few days after the European Parliament elections, Marilena Raouna, Cyprus’ Deputy Minister for European Affairs, sat down with NE Global on the sidelines...

G7 Summit focuses on Ukraine support and shattering Russia’s wartime economy

Despite last week’s expert punditry (itself almost indistinguishable from AI) on the latest G7 decisions as exhibited by the “instant experts” on global issues...