Gazprom’s share in European gas market rises

Gazprom held a press conference “Gas export and enhancing of gas supplies to Europe” highlighting that the Russian giant sold 159.4 billion cubic meters of natural gas in the international markets in 2014. 

Gazprom informed that its share in the European market went up to 30.2 percent; the proceeds from gas sales beyond the former Soviet Union made up RUB 1.801 trillion in 2014.

Domestic gas production continues to fall in Europe. According to a consensus forecast, the additional imports of gas to Europe will amount to nearly 150 billion cubic meters of gas a year in 2025; thus, the situation will enable Gazprom to reinforce its position in the European market.

Taking into account that the gas transit agreement with Ukraine expires at the end of 2019, Gazprom launched the construction of the Turkish Stream gas pipeline with the annual capacity of 63 billion cubic meters to be laid to the Turkish-Greek border. Gas from the first string (annual capacity – 15.75 billion cubic meters) is intended for the growing Turkish market. Gazprom and Botas are going to sign a commercial agreement till the end of June 2015.

Gazprom continues to build up UGS capacities abroad with a view to enhance the reliability of Russian gas supplies to Europe. In particular, jointly with VNG, Gazprom continues the construction of the Katharina UGS facility in Germany. Four UGS caverns with the aggregate working volume of over 220 million cubic meters are currently operational. The construction of the Damborice UGS facility with the working gas capacity of 456 million cubic meters is underway in the Czech Republic. Last year Gazprom obtained 1.9 billion cubic meters of the total storage space in the Bergermeer UGS facility – the largest one in Europe providing access to third parties. All in all, the aggregate working gas capacities of European UGS facilities, either owned or leased by Gazprom, exceeded 5 billion cubic meters in 2014.

Gazprom said it is also active in the European NGV market. The company operates 28 CNG filling stations in Germany and owns 12 gas filling stations in the Czech Republic. Gazprom operates one LNG filling station for buses in Poland and the second filling station is currently under construction there.

Development of large-scale LNG supplies, as well as talks with the European Commission were among other issues discussed at the conference.

1 RUB = 0.01844 USD

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Image: Gazprom

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