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Gazprom: 2013 Milestones

The year 2013 has become a crucial stage for the development of Gazprom and the reinforcement of the Company’s leading positions in the Russian and global energy markets.

The Company launched two offshore projects. In October the first gas was extracted from the Kirinskoye field where Russia’s first subsea production facility is installed. Two months afterwards Gazprom pioneered the development of the Russian Arctic shelf: the first oil recovered from the Prirazlomnoye field enabled the Company to start establishing a producing region there.

Another step was made toward expanding the Company’s presence in the liquefied natural gas market. Gazprom gave start to two new LNG plant projects in the Primorye Territory and the Leningrad Region. Proactive work continued in the international markets: the Company began building the Bulgarian and Serbian sections of the South Stream gas pipeline and launched gas production in Vietnam. Gazprom allocated record high investments into the gasification of Russian regions (almost RUB 34 billion), completed the construction of Russia’s most advanced combined cycle thermal power plant in Adler, commissioned the twenty second underground gas storage facility in Russia – Kaliningradskoye and switched all its refineries to Euro 5 fuels production ahead of schedule.

Gazprom is Russia’s first company to use subsea gas production technologies

On October 23 Russia’s first subsea production facility was successfully tested in the Kirinskoye field within the Sakhalin III project. The subsea production facility makes it possible to produce gas with no platforms or other above-water facilities. Subsea production technologies are efficient, reliable and safe. Their application makes it possible to considerably mitigate environmental impacts.

The Kirinskoye field and other fields within the Sakhalin III project are the resource base for promoting the gasification process in the Russian Far Eastern regions and building a liquefied natural gas plant in the Primorye Territory: the Vladivostok-LNG project.

Gazprom pioneers Russian Arctic shelf development

On December 20 Gazprom started producing oil from the Prirazlomnoye field. It is the first Russian project for developing the Arctic shelf and the commencement of Gazprom’s large-scale activities aimed at creating a large hydrocarbon producing center in the region.

The Prirazlomnaya offshore ice-resistant stationary platform secures every process operation in the field. It is for the first time in the world that hydrocarbons in the Arctic shelf will be produced by a stationary platform. Prirazlomnaya is intended for operation under extreme environmental and climatic conditions, meets the most stringent safety requirements and can resist high ice loads. The design features of Prirazlomnaya fully exclude any oil spills during its production and storage.

Zapolyarnoye becomes most productive field in Russia – 130 billion cubic meters per year

While implementing its gas production strategy, not only does Gazprom enter new gas-bearing regions, but improves the efficiency of developing the existing fields in the traditional Nadym-Pur-Taz region.

The development of the Valanginian deposits, which are deeper and more hard-to-reach than the Cenomanian ones, made it possible on January 15 to bring the Zapolyarnoye field to its full capacity – 130 billion cubic meters of gas per year. As a result, Zapolyarnoye became the most productive gas field in Russia.

Gazprom gives start to two new LNG projects

Gazprom aims to speed up the implementation of new LNG projects intended to increase the Company’s share in the global gas market. These projects are the Vladivostok-LNG project in the Primorye Territory and the LNG plant project construction in the Leningrad Region.

On February 21 Gazprom adopted the final investment decision on the Vladivostok-LNG project. The start of supplies from the first train of the plant is expected in 2018, from the second train – in 2020. Each train will have an annual capacity of 5 million tons. In future the plant capacities may be expanded.

On June 21 Gazprom and the Leningrad Region authorities signed the Memorandum of Understanding and Cooperation regarding the LNG plant construction in the region. The plant will have an annual capacity of up to 10 million tons of LNG and is expected to be operational in 2018.

South Stream construction continues

In 2013 South Stream – Gazprom’s project aimed at diversifying the natural gas export routes to Europe – advanced considerably.

On October 31 the South Stream construction started in Bulgaria, on November 24 – in Serbia. Intensive preparations are underway to launch the construction in other countries participating in the project, namely Hungary, Slovenia, Croatia and Republika Srpska.

In Russia the work progressed on the construction of Southern Corridor – the gas transmission system designed, inter alia, for feeding gas into South Stream.

Gazprom launches gas production in Vietnam

In October Gazprom jointly with Petrovietnam National Oil and Gas Group launched commercial gas production from the Moc Tinh and Hai Thach fields offshore Vietnam.

Gazprom’s NGV fuel entering Asia-Pacific market

In November Gazprom and Petrovietnam National Oil and Gas Group signed the Agreement on setting up PVGAZPROM Natural Gas for Vehicles joint venture. The NGV initiative is Gazprom’s first project of a kind in the promising Asia-Pacific market.

The creation of the Russian-Vietnamese joint company became a practical step in using natural gas as a vehicle fuel in Vietnam.

Two years in a row Gazprom allocates record high investments into gasification of Russian regions

In 2013 the Company continued its large-scale efforts aimed at supplying natural gas to Russian regions. According to the amended Gasification Program, Gazprom allocated RUB 33.9 billion for this purpose – RUB 100 million more versus 2012. In this way, for the second year in a row the Company allocated record high investments into the gasification of Russian regions. 174 inter-settlement gas pipelines for supplying natural gas to 320 localities are expected to be built in 2013.

Energy security of Russia’s western enclave – Kaliningrad Region – boosted significantly

On September 23 Phase 1 of the Kaliningradskoye UGS facility with a working gas capacity of 52 million cubic meters and maximum daily deliverability of 4.8 million cubic meters (daily average gas consumption in the Region is 5.9 million cubic meters) was commissioned by the start of the heating season

The facility commissioning is a part of Gazprom’s large-scale activities aimed at expanding gas supply to the Kaliningrad Region. Previously, the Company almost doubled the capacity of the Minsk – Vilnius – Kaunas – Kaliningrad gas pipeline to 2.5 billion cubic meters per year. The decision was reached to create an alternative route of natural gas delivery to the region – in the form of LNG by sea. For this purpose Gazprom will build an LNG regasification terminal on the Baltic Sea coast. The development of the Kaliningradskoye UGS facility capacities will be accelerated.

Adler TPP – new energy heart of Sochi – commissioned

On January 21 Gazprom commissioned the Adler TPP. The most advanced power plant in Russia helped to significantly enhance power supplies to Sochi and made this region less dependent on the neighboring power networks. The power plant will cover over one-third of the projected peak demand of the Sochi power district during the 22 Winter Olympic Games.

2013 – Year of Ecology in Gazprom

The environmental protection is a top priority of Gazprom’s development strategy.

2013 is declared the Year of Ecology in Gazprom. Over 6,000 events involving over 70,000 people from the Company’s 50 subsidiaries were held. Gazprom planted 300 thousand trees and flower gardens, cleared and developed nearly 3.6 thousand hectares of land, rehabilitated over 180 water reservoirs. Besides, 1.9 million tons of fuel equivalent were conserved and 653 motor vehicles were converted to natural gas within the Year of Ecology under the Energy Saving Program.

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