Gazprom-AR2014

20
Business Development Prospects
Gas business
Gazprom seeks to maintain its leadership in the global gas industry in the long-term.
In the Russian market, Gazprom strives to maintain its current positions both in terms of the
amount of gas supplies and their reliability, including during the heating season. The Group intends
to maintain its share of the traditional European markets. Gazprom seeks to grow its share
of North-East Asia markets to 10–15% in the longer term.
To these ends, Gazprom plans to achieve a number of strategic milestones.
— In gas production, development of new gas production centres in the Yamal Peninsula, on the
continental shelf, Eastern Siberia, and the Russian Far East will continue in parallel with measures
to sustain production at the existing fields.
— In gas transportation, the development and refurbishment of the Unified Gas Supply System
(UGSS) will continue to support production growth. The existing infrastructure is expected to
be used as extensively as possible to ensure reliable deliveries. The UGSS expansion in
Russia’s eastern regions and building up of gas storage and LNG production capacities will
continue.
— In gas marketing, the Company plans to expand its presence in the more promising markets,
including the Asia-Pacific Region, and increase the LNG share in Gazprom’s export portfolio.
— In gas processing and gas chemical production, the Group’s development will be driven by
the increasing extraction of valuable components from natural gas and associated petroleum
gas (APG) and their effective utilisation for further processing into marketable high value-added
(HVA) products. Gas processing and gas chemical plants are to be upgraded or constructed
from scratch, including in Eastern Siberia and the Russian Far East.
Westward development of gas business
—
—
Goals
Maintain current
positions in the
Russian gas market
both in terms of gas
supplies and their
reliability.
Maintain the current
share of gas supplies
to the European gas
market, or consolidate
positions in a
favourable market.
Westward development of gas business covers three key gas markets where OAO Gazprom is
currently present.
The western (European) part of Russian UGSS is affected by the saturation of utility consumer
demand and lower industrial production growth rates due to the country’s economic slowdown.
These external factors largely contribute to the fall in consumer demand for natural gas in the
European part of Russia.
Besides, there is a risk of substantial drop in demand for Russian gas in certain FSU countries
seeking to reduce their reliance on Russian gas supplies by diversifying their energy sources.
In the context of declining consumer spending, the Company’s key priority would be to improve
supply reliability and continuity through upgrades and technical re-equipment, enhance
R&D capabilities of its facilities, cut losses, and save costs across all operations.
Development of new business segments would also contribute to the Company’s sustainability
in a crisis environment: promotion of natural gas as a motor fuel, development of power generation
business, expansion of the product range — LNG and synthetic liquid motor fuels.
OAO Gazprom Annual Report 2014