for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Oil report

FACTBOX-Gazprom's growing global gas interests

Sept 9 (Reuters) - Russia's state-run Gazprom GAZP.MM, the world's biggest gas producer, has been expanding internationally in a drive to become a dominant global energy market player.

Russia has transformed the old Soviet Gas Ministry into a company with a market capitalisation of around $120 billion. According to the company’s website, the state had a 50.002 percent stake as of Dec. 31, 2008, with the public holding the rest.

The company borrowed $11 billion in the first half of 2009, and said in June it expected export sales to fall to $40 billion this year.

Here are Gazprom’s international operations by continent.

EUROPE

Gazprom supplies Europe with a quarter of its gas, mainly through Ukraine. A row between Moscow and Kiev over gas payments led to a cut in supplies to parts of Europe for two weeks in January 2009.

Europe plans to diversify its supplies with projects like the Nabucco pipeline to bring gas from the Caspian and Middle East, bypassing Russia. Moscow plans a rival pipeline, South Stream, to keep Europe supplied through Russia.

Gazprom, working with Italy's ENI ENI.MI, has so far received backing from Bulgaria, Serbia, Italy, Greece and Hungary for the pipeline that would carry gas from Central Asia under the Black Sea to Europe by 2015. Austria and Slovenia are close to signing up to the deal, Gazprom said. [ID:nLM937627]

GERMANY - Receives 42 percent of its annual demand from Gazprom, about 35.55 billion cubic metres* (bcm) of gas a year, making it the firm’s largest European export market.

The biggest clients are E.ON EONGn.DE and BASF BASF.F. Gazprom, along with BASF, E.ON and Dutch firm Gasunie, plan to build a 7.4 billion euro ($10.52 billion) gas pipeline, Nord Stream, to take up to 55 bcm of gas a year from Russia to Germany under the Baltic Sea.

Russian gas also travels through the Yamal-Europe pipeline, which runs over 4,000 km from the Yamal peninsula in Russia’s Arctic north to Frankfurt on Oder on the Polish-German border, with an annual capacity of 30 bcm.

TURKEY - became the second biggest Russian gas buyer in 2007 when it bought 23.15 bcm*, 75 percent of its total gas imports.

Just under half of Russian gas to Turkey is supplied through the Blue Stream gas pipeline which supplied 7.5 bcm and 9.5 bcm in 2006 and 2007, respectively.

In August Turkey granted permission sought by Russia to go ahead with the South Stream project. The deal also envisaged the participation of Russia in the Samsun-Ceyhan oil pipeline and the extension of the Blue Stream pipeline to Syria, Lebanon, Israel and Cyprus.

ITALY - is a major importer of Gazprom gas in Europe with 23.80 bcm* in 2007.

BRITAIN - began importing gas from Gazprom in 2001 and became its fourth largest Western European export market in 2007 with 15.2 bcm sold, representing 16 percent of UK consumption. Gazprom’s British arm wants to increase commercial gas sales in Britain by two-thirds in 2009 and enter the household market after 2011.

IRELAND - became the 23rd European country in which Gazprom sells gas, through a pipeline link to Britain. Gazprom hopes to supply 15 to 20 percent of the commercial Irish gas market by the end of 2010.

FRANCE - imported 7.63 bcm of Russian gas or 22 percent of total gas imports in 2007. Gazprom's main partner is GDF Suez GSZ.PA and it also sells gas to smaller independent customers.

CZECH REPUBLIC - received 6.43 bcm* of gas from Gazprom in 2007, equivalent to 75 percent of its imports.

SPAIN - Russia and Spain signed an energy agreement in March to give Spanish companies greater access to Russian fields. Gazprom and Spain's Gas Natural GAS.MC have agreed to study joint projects in northeast Europe, and to discuss Gazprom's possible purchase of gas fired power plants in Spain.

Gazprom has also been in talks with Spanish oil firm Repsol REP.MC over the development of Russia's Yamal gas fields amd participation in liquefied natural gas (LNG) projects. Spain's Prime Minister Jose Luis Rodriguez Zapatero said he would make building energy ties with Russia a top priority when it takes over the European Union presidency in 2010.

Gazprom said it also plans to sign a gas swap deal with Gas Natural to bring Russian gas from the Shtokman field to Spain [ID:nL3578889].

HUNGARY- buys 7.5 bcm a year from Gazprom, amounting to over 60 percent of its needs.

POLAND- buys half its gas needs from Russia, while SLOVAKIA, BULGARIA and FINLAND rely almost totally on Russian gas.

CENTRAL ASIA

TURKMENISTAN and KAZAKHSTAN have agreed plans with Russia for a new gas pipeline around the Caspian Sea, the Caspian Gas pipeline, to deliver up to 20 bcm of gas a year by 2009-2010. Gazprom buys gas from Turkmenistan, Kazakhstan and Uzbekistan for export to Europe. But sales from Turkmenistan have been halted since a pipeline blast in April.

AZERBAIJAN - Gazprom’s head Alexei Miller said in June Azerbaijan had promised Russia priority in buying gas from the second phase of the Shah Deniz deposit that Europe is counting on to fill its Nabucco pipeline.

ASIA

JAPAN - The first cargo of liquefied natural gas (LNG) from Russia arrived in Japan in April 2009. Gazprom leads the $22 billion Sakhalin-2 project, which exports Russian LNG to Japan. Royal Dutch Shell RDSa.L and Japan's Mitsubishi Corp 8058.T and Mitsui 8031.T are also shareholders in the project.

Japan is the world’s fourth-largest energy consumer and gas accounts for 14 percent of its energy consumption.

LNG imports from Russia’s Sakhalin are expected to reach around 7 percent of Japan’s supplies. Around 8 million tonnes out of more than 9 million tonnes expected to be produced at Sakhalin-2 each year will be sold to Japan. Russia said the plant aims to supply 5 percent of world demand for LNG when it reaches full capacity in 2010.

Gazprom and the Japanese government have also agreed to examine ways to process gas in Russia’s Pacific coast city of Vladivostok partly for export to the Asia-Pacific region. The first phase of the Sakhalin-Khabarovsk-Vladivostok pipeline is expected to be completed by the third quarter of 2011.

SOUTH KOREA- Korea Gas Corp (KOGAS) will get around 1.5 million tonnes a year of LNG from the Gazprom-led Sakhalin-2 terminal. South Korea is the world’s second largest LNG buyer. In September 2008, South Korea and Russia agreed to a $90 billion deal to import Siberian gas to South Korea from Vladivostok across North Korea.

IRAN and QATAR - In October 2008, Gazprom said it planned to work with Iran and Qatar to develop the world’s biggest gas field in Iran’s South Pars, which also borders Qatar.

INDIA - received its first cargo of Russian LNG from Sakhalin in May 2008. The shipment was sold to Total Gas & Power and arrived at a terminal co-owned by Shell and Total in the state of Gujarat.

CHINA - Gazprom agreed to build two pipelines to China and supply up to 80 bcm a year at peak capacity. The firm said in September 2008 it expected to conclude pricing talks with China in 2009 and start gas deliveries in 2013-2014.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up