Presentation - Gazprom

GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION
PROGRAM IN 2011
Kirill Seleznev
Member of the Management Committee – Head of the Gas and Liquid
Hydrocarbons Marketing and Processing Department, Gazprom;
Director General, Gazprom Mezhregiongaz
PRESS CONFERENCE ON THRESHOLD OF GAZPROM’S
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2
Gazprom Group’s Gas Sales
in 2011
In 2011 Gazprom Group delivered 265.3 billion cubic meters of the Group’s gas
to Russian consumers (versus 262.1 billion cubic meters in 2010)
Power industry – 28%
Population – 21%
Utility sector – 15%
Agrochemistry – 7%
Metallurgy – 7%
Cement industry – 2%
Miscellaneous – 20%
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

3
Proceeds from Gas Sales by Gazprom Group
Gazprom Group’s proceeds from gas sales in Russia
grew by 17.6% to RUB 723 billion (net of VAT and excise duty)
versus 2010
RUB billion
356.1
399.5
474.3
494.9
614.7
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011
723.0
2006 2007 2008 2009 2010 2011

4
1,125
Gazprom Group’s Gas Sales Price
In 2011 the average gas sales price in the domestic market rose by
RUB 380 to RUB 2,725.4 per 1,000 cubic meters (net of VAT and excise duty)
versus 2010
RUB/1,000 cubic meters
1,301
1,653
1,885
2,345
2,725
2006 2007 2008 2009 2010 2011
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

5
Gas Sales by Gazprom Mezhregiongaz Group
In 2011 Gazprom Mezhregiongaz Group sold 306.9 billion cubic meters of
gas using Gazprom’s and other resources, thus achieving a 1.8% rise
versus 2010
including 27 billion cubic meters of gas sold at the prices
set by Russian Government Directive No.333
(in 2010 – 25.1 billion cubic meters of gas)
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

6
Gas Supplies to Socially Significant Consumer Groups
In 2011 Gazprom Mezhregiongaz Group delivered 88.8 billion cubic meters
of gas to socially significant consumer groups
(87 billion cubic meters in 2010)
Total payments made by socially significant consumer groups in 2011 –
93.8% (in 2010 – 95%)
Payments made by utility companies remained at the level of 2010 – 95%
Payment discipline significantly deteriorated in 10 regions and improved in
6 regions
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

Regions with the significantly deteriorated payment level
Republic of North Ossetia –
Alania
7
Payments for Gas Made by Utility Companies
in Russian Regions in 2011
Payment
Level,
%
Change
Compared to
2010, %
6.1 – 72.3
Republic of Kabardino-
Balkaria
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011
Payment
Level,
%
Change
Compared to
2010, %
40.2 – 8.2
Vladimir Region 71.7 – 21.7 Republic of Dagestan 43.1 – 7.3
Krasnodar Territory 66.6 – 18.9 Smolensk Region 58.2 – 5.5
Republic of Adygea 70.2 – 14.4 Moscow Region 79.5 – 3.3
Astrakhan Region 64.1 – 9.6 Republic of Kalmykia 6.7 – 0.7
As of December 31, 2011

Regions with the significantly improved payment level
8
Payments for Gas Made by Utility Companies
in Russian Regions in 2011
Payment
Level,
%
Change
Compared to
2010, %
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011
Payment
Level,
%
Change
Compared to
2010, %
Kemerovo Region 92.1 + 15.8 Nizhny Novgorod Region 96.8 + 2.8
Republic of Udmurtia 74.6 + 7.6 Lipetsk Region 95.2 + 2.1
Moscow 100.0 + 5.3 Kaluga Region 98.5 + 0.7
As of December 31, 2011

In 2011 the level of
gas payments by
population equaled
92% which is 4.1%
down versus 2010
Payments by Population in 2011, %
Regions with the worst gas payments made by population
9
Republic of Chechnya 42.1
Republic of Dagestan 42.3
Republic of Ingushetia 59.8
Republic of Kabardino-Balkaria 71.3
Republic of Karachaevo-Cherkessia 74.1
Republic of Adygea 75.2
Republic of North Ossetia – Alania 80.4
Astrakhan Region 82.6
Republic of Kalmykia 84.6
Stavropol Territory 89.5
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

As of December 31, 2011 the overdue amount payable to Gazprom
Mezhregiongaz Group totaled RUB 57.7 billion
10
2010
2011
Growing Debt to Gazprom Mezhregiongaz Group
for Supplied Gas
RUB billion
43.6
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011
57.7

RUB billion
11
0.9
2.6
Gazprom’s Investments in Gasification of Russia
between 2001 and 2011
Total investments in gasification of Russia totaled RUB 156 billion
3.5 2.9
9.2
17.9
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
20.8
24.2
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011
19.3
25.6
29.1

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Execution of Russian Regions Gasification Program
from 2001 to 2011
From 2005 to 2011 investments exceeded RUB 146 billion
BUILT: 1,292 inter-settlement gas pipelines
GASIFIED: 2 524 population centers,
with the length of more than 18.5 thousand kilometers
3,150 boiler houses,
more than 546 thousand households and apartments
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

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Russian Regions Gasification Program Implementation
in 2011
Investments of RUB 29.07 billion were allocated to
design and survey activities, developing (adjusting) general gas supply and gasification schemes for
Russian regions and constructing gas distribution networks in 65 Russian constituents
Russian Regions Gasification Program scope expanded:
development and implementation of investment projects as unified process complexes (gas laterals, gas
distribution systems and inter-settlement gas pipelines) started in Russian regions, including the Far
East;
development of standalone gasification; in some regions – Republic of Buryatia, Tyva, Khakassia and
Altai – the standalone gasification option is considered; projects for standalone gasification launched in
the Perm and Khabarovsk Territories in addition to the gas pipeline network construction;
2011-2013 Volgograd Region Gas Supply Development and Gasification Program launched;
work is underway within federal programs for building the Olympic venues and facilities needed for the
Asia-Pacific Economic Cooperation Summit (APEC 2012).
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

Using the unique directional drilling technology, construction of the first string of
the submerged inter-settlement crossing under the Eastern Bosphorus Strait to
consumers of the Russky Island completed in 2011
14
Construction of Submerged Crossing
Under Eastern Bosphorus Strait
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

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Results of
Russian Regions Gasification Program in 2011
Gazprom entirely fulfilled its obligation in 2011
221 inter-settlement gas pipelines in 49 Russian regions completed according to schedule
23 inter-settlement gas pipelines completed ahead of schedule considering consumer
readiness
Gazprom created conditions for construction and connection of:
390 population centers, some 74 thousand apartments and households, 570 boiler houses
244 gasification facilities stretching for some 2,500 kilometers were completed
in 2011
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

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Meeting Obligations by Regional Authorities on Consumer
Preparation for Gas Supplies
Russian regions meeting their obligations
according to schedule
Astrakhan Region Omsk Region
Voronezh Region Orenburg Region
Vologda Region Perm Territory
Vladimir Region Republic of Bashkortostan
Kirov Region Ryazan Region
Kursk Region Saint Petersburg
Lipetsk Region Ulyanovsk Region
Nizhny Novgorod Region Khanty-Mansiysk Autonomous Area
Orel Region
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

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Meeting Obligations by Regional Authorities on Consumer
Preparation for Gas Supplies
Russian regions falling behind schedule
Altai Territory Novosibirsk Region
Bryansk Region Primorye Territory
Volgograd Region Rostov Region
Ivanovo Region Sakhalin Region
Kaluga Region Stavropol Territory
Kurgan Region Tambov Region
Leningrad Region Tula Region
Novgorod Region Khabarovsk Territory
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

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Meeting Obligations by Regional Authorities on Consumer
Preparation for Gas Supplies
Russian regions failing to meet their obligations
according to schedule
Arkhangelsk Region Republic of Dagestan
Kaliningrad Region Republic of Kalmykia
Republic of Karachaevo-Cherkessia Republic of Karelia
Kostroma Region Samara Region
Moscow Region Saratov Region
Pskov Region Republic of Udmurtia
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

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2012 Russian Regions Gasification Plan
Investments grew by almost 30% to reach the record amount of RUB 37.66 billion
Gazprom’s top-priority gasification activities in Russian regions:
Further gasification development in Russian regions aimed at attaining the maximum economically
viable gasification level, meeting the solvent gas demand, improving the living conditions of the
population mainly in the rural area and economic growth of Russian constituents
Streamlining the joint efforts of Gazprom and Russian constituents administrations aimed at
synchronized creation of the “gas pipeline – consumer” complex and loading of capacities once they
are built and commissioned
Gasification and gas supply to the Far East and southern Russia, particularly within the federal
programs as related to the gasification facilities construction needed for the APEC 2012 Summit and
2014 Winter Olympic Games in Sochi
GAS SUPPLY TO DOMESTIC MARKET.
EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM IN 2011

THANK YOU FOR YOUR ATTENTION
PRESS CONFERENCE ON THRESHOLD OF GAZPROM’S
ANNUAL GENERAL SHAREHOLDERS MEETING