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Blue Fuel,” Pipeline Infrastructure Enhancement Gazprom Group Has Been Increasing Its Pg

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Blue Fuel,” Pipeline Infrastructure Enhancement Gazprom Group Has Been Increasing Its Pg FUEL ÝÊÑÏÎÐÒ BLUE Gazprom Export Global Newsletter IN THIS ISSUE Gazprom & Turkey: A Diverse Partnership Pg. 2 TO OUR READERS: WINGAS Plays a Key Part in Accessing Europe Gazprom Group Prepared to Meet Pg. 3 Gazprom Export Signs Agreement Growing Natural Gas Demand for Bergermeer Gas Storage Project Pg. 4 Since June 2009, worldwide demand for Group reached 583.4 bcm, with a gas natural gas has continued to grow. In order reserve replacement ratio of 1.06. Southeast European Natural Gas to meet this growing demand and continue Landscape: A Greek Perspective to serve as a reliable supplier of “blue fuel,” Pipeline Infrastructure Enhancement Gazprom Group has been increasing its Pg. 5 Gazprom is also making inroads in production volumes since the beginning of pipeline construction and infrastructure. The Success Story of Czech July 2009 and vigorously working on pipeline Flexibility infrastructure enhancement projects. At the end of August, the company Pg. 6 commissioned the Dzuarikau–Tskhinvali Increasing Production pipeline in South Ossetia, which marked the successful completion of a project Climbing Elbrus Mountain By the end of July, gas production reached initially started in 2006. Pg. 6 1.1 bcm of daily output, close to last year’s Kontinental Hockey League is figure. Gazprom Export anticipates higher While the Dzuarikau-Tskhinvali pipeline results for Q3: Europe will increase its is only 162.3 kilometers long with an Successful in Promoting Hockey as a purchasing volume as the price of natural gas annual capacity of 252.5 mcm, it is Global Sport has decreased and storages are not filled in. significant in its engineering feat as the Pg. 7 highest-altitude gas pipeline in the world. Both natural gas reserves and production No other global energy company has capacities are sufficient enough to meet Open World: Art Therapy for ever operated in such a harsh geological demand both short- and long-term. According Musical Prodigies environment. Nearly half the pipeline to a recent statement by Ms. Vlada Rusakova, passes through highlands at an altitude Pg. 8 a member of Gazprom’s Management of more than 1,500 meters in areas of Committee, by 2020 the volume of natural gas Gazprom Export Commences high seismic activities and the hazards production, including fields in Eastern Siberia Haidach UGS Operations of landslides, mudflows and avalanches. and the Far East, is likely to equal 670-680 Such hazardous areas may stretch up Pg. 9 bcm, and for Yamal it could surpass 130 bcm. to several hundred meters, including Indeed, Gazprom’s plans for the tectonic fault lines, which may vary in development of the gas industry mineral length between two and 15 kilometers. resource base until 2030, developed in There are 15 tunnels, with a total length 2002, is being successfully implemented. of 1,848 meters, and 29 water crosses Between 2002 and 2008, 23 new fields and constructed along the line. The pipeline 47 deposits of oil and gas were discovered runs across five mountain ridges, and in Russia. reaches 3,148 meters at the Kudar Pass. Beginning in 2005, exploration projects But there are things far more important: secured a steady growth of oil and gas This pipeline will contribute to reserves above the extraction volume. As a development in South Ossetia, to the result of these projects, in 2008 the overall improvement of living conditions for its growth of gas reserves throughout Gazprom Continues on page 5 www.gazpromexport.com | [email protected] | +7 (499) 503-61-61 October 2009 | Vol. 2 | Issue 3 1 BLUE FUEL Gazprom Export Global Newsletter ÝÊÑÏÎÐÒ Gazprom & Turkey: A Diverse Partnership Valery Nosov, Head of Department of Gas Exports (South Routes and CIS Countries) For Gazprom, percent of its total contracted volume until In Gazprom’s view, the Turkish power Turkey is becoming 2009. Gazprom was the only supplier of generation market is extremely promising; not only one of the BOTAŞ that agreed to transfer part of its even during the global economic crisis, biggest consumers of contracts to new customers. So far, only the demand for electricity in Turkey Russian natural gas, one tender has been held for the transfer rose steadily. Moreover, the share of but also a key partner of a contract, which amounts to four bcm the gas generation sector in the country in a wide array of per year. The transferred gas volumes are is relatively high, far higher than in large-scale energy being delivered to Turkey under contracts European countries. Currently, we are and industrial projects. The gas industry with private companies such as Shell evaluating various possibilities to enter factors substantially in cooperation Energy, Bosphorus Gas, Avrasia Gas and this sector with our Turkish partners. between Moscow and Ankara. Turkey is Enerco Energy. In particular, we are considering the the second biggest importer of Russian construction of new gas-fired power So, what underlies our unique gas in terms of volumes and one of the plants on a joint basis, which does not partnership with Turkey? First, we largest markets for the fuel. In 2008, the exclude acquiring stakes in pre-existing understand the importance of the total consumption of natural gas in Turkey amounted to 37.5 bcm, of which 23.8 bcm came from Russia, accounting for 60 percent of the country’s total consumption. The first Soviet-Turkish agreement concerning deliveries of natural The Russia-Turkey natural gas relationship has had a long and gas was signed in September 1984 as the result of successful bilateral successful history. Our first deliveries negotiations between the two countries. The 25-year contract of gas to Turkish consumers date back to 1987. Initially, those deliveries were stipulated that the USSR was obliged to supply natural gas, and the transited via Ukraine, Romania and Turkish Republic committed to purchasing it. This event marked the Bulgaria. Since 2003, gas has been first significant step forward in establishing positive Russian-Turkish delivered to Turkey directly via the Blue Stream pipeline connecting Russian gas relations. In 1986, once the contract had been settled, the first and Turkish coasts along the Black Sea. gas pipeline was constructed. Two years later, in August 1988, Ankara In 2010, the pipeline will reach its full design capacity of 16 bcm per year. received its first shipments of Russian natural gas. But Gazprom is more than just Turkey’s largest supplier of natural gas; we also provide Turkey with additional volumes of gas when the country needs it most. Quite often, our company delivers daily volumes of gas that exceed our contract development of the Turkish gas market. projects. Of chief importance is our obligations, particularly when Turkey Next, we work closely together with participation throughout the entire value encounters difficulties with deliveries of policymakers and regulators to anticipate creation chain, from the delivery of natural gas from other sources. policy changes, and strictly uphold the gas, to our participation as a shareholder Furthermore, Gazprom Export has also fulfillment of contractual obligations in key projects, to sales of generated been successful in continuing to integrate between both parties. Finally, we keep electric power to customers. with the liberalization of the Turkish gas an open mind when it comes to Turkish Our close working relationship in market. A 2001 law held that BOTAŞ, initiatives and possibilities for investing Turkey’s gas sector has led to greater the Turkish state-run energy company, in the country’s economy, particularly in cooperation in large-scale business was to hold annual tenders to transfer the development of its gas distribution projects. Russia and Turkey recently its gas import contracts for at least 10 system and electric power sector. signed a number of energy deals, Continues on page 3 www.gazpromexport.com | [email protected] | +7 (499) 503-61-61 October 2009 | Vol. 2 | Issue 3 2 BLUE FUEL Gazprom Export Global Newsletter ÝÊÑÏÎÐÒ WINGAS Plays a Key Part in Accessing Europe Gazprom & Turkey Continued from page 2 Alexander “In order to build on this success, timely Medvedev, investment in production development, calling for, among other things, the Director General in infrastructure expansion and in construction of a nuclear power plant of Gazprom staff training is essential,” stressed in Turkey and the development of oil Export, was a Medvedev. “There is no other way.” He transportation infrastructure. guest at the WINGAS Forum events highlighted the construction of the Baltic series, where experts from the fields of Sea pipeline to reduce dependence The Protocol on cooperation in the gas politics, economics, science and culture on transit countries as one of the most industry signed between Russian Prime provided diverse insight into improving important projects: “The significance of Minister Vladimir Putin and Turkish WINGAS (a joint venture by Gazprom Nord Stream for Russia should also not Prime Minister Recep Tayyip Erdoğan Export and Wintershall) employees’ be underestimated.” on 6 August 2009 in Ankara was knowledge of Russia; creating a better significant. The Protocol covers a wide Looking to the future, Medvedev stated understanding of Russian culture; range of areas, including: that Gazprom’s primary objective is examining German-Russian relations; further growth. He added that while • Negotiations on conditions of and describing the prospects for Europe will remain the most important extending the long-term natural gas collaboration between Germany and market, the company’s goals will also sales contract expiring in 2011; Russia in the future. include an increased focus on Asia and • Issuance of permits by Turkish Medvedev pointed to WINGAS as an America moving forward. Furthermore, authorities to conduct sea excellent example of successful German- Gazprom will also seek to invest in new reconnaissance and environmental Russian collaboration: “Our cooperation fuel transport possibilities.
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