Gazprom’s plans

International Press

Gazprom, the world’s biggest producer, wants to boost its share of Europe’s
gas market to 30% from 25% by buying into gas storage, gas marketing and
power firms.

The following are Gazprom’s expansion plans in Europe, Asia and the United States :


Gazprom supplies 3/4 of Turkey’s gas via southern Europe and by a
pipeline under the Black Sea, which it jointly owns with ENI. It wants to expand
the underwater line to ship more gas to Austria and Italy to rival a similar plan
by BP for Azeri gas. It wants to buy Turkish gas distribution firms, seeks direct
deals with Turkish utilities and wants to transit gas to Israel.


– Gazprom wants to supply China and South Korea
with pipeline gas. It says it will sign a deal on a gas pipeline to China this year
and it may swap Chinese Liquefied Natural Gas ( LNG ) imports for Russian
pipeline gas. Gazprom said it may supply China, Korea and Japan with LNG if it
buys into Shell’s Sakhalin field. It also wants to develop gas fields in India, take
part of a gas pipeline from Iran to India and work on Iran’s South Pars project.


Gazprom wants to supply up to 20% of U.S. gas markets
within decades, mostly with LNG from its giant Shtokman field, by swapping
LNG for pipeline gas in Europe and by buying into other LNG projects. It is in
talks with Chevron, Conoco Phillips, Total, Statoil, North Hydro, Sempra and
Royal Dutch/Shell on assets swaps, purchase of LNG assets and access to
regasification terminals in the United States, Mexico and Canada.


Gazprom wants to take its UK market share to 10% and sell up to 10
billion cubic meters ( bcm ) a year, up from the current four bcm, by 2010. It is
looking to buy North Sea gas projects, boost its share in the Interconnector
pipeline, which links Britain to Belgium, buy into distribution firms and expand
storage capacity after already buying into Humbly Grove.


Gazprom is eyeing ventures with Belgian power firms Distrigas and
Fluxys, might buy a stake in Fluxys, is interested in acting as a hub operator in
Zeebrugge as well as in gas supply and storage of LNG.


Gazprom supplies 1/3 of Italy’s gas demand under term contracts with
ENI. It has separate deals to supply industry consumers in Italy, mostly utilities,
and wants to expand these activities to take advantage of Italy’s gas market
liberalization. The firms include Enel and Edison. It wants to boost supplies and
buy into gas storage and is considering assets swaps with ENI.


Gazprom supplies 1/4 of France’s gas needs under term contracts
with Gaz de France ( GDF ). It has no major acquisition plans, but wants to start
trading electricity this year by selling gas to power stations and buying
electricity from them. Gazprom sees GDF and Algeria’s Sonatrach as important
partners to swap Russian pipeline gas in Europe against LNG production for
delivery to the United States.


Gazprom supplies 3/4 of Austria’s gas under a term deal with OMV.
Austria is a transit route for Russian gas to Italy, France, Hungary, Slovenia and
Croatia. Austria’s RAG, German Wingas and Gazprom have agreed a 250-million
euro deal to build the Haidach gas storage site in Austria which will be the
second largest in central Europe.


Gazprom supplies 1/3 of Germany’s gas under term deals with
E.ON’s Ruhrgas and BASF’s Wintershall. It controls a 1,830-kilometer ( 1,137
miles ) gas pipeline network in Germany via Wingas – a joint venture between
Gazprom and Wintershall, Western Europe’s largest gas storage company. It
supplies Romania via a joint venture with Wintershall and Switzerland via a
joint venture with Ruhrgas. It is looking for direct deals with utilities, to trade
electricity, buy new storage facilities and expand supplies via a new pipeline
under the Baltic Sea. It may acquire some of E.ON’s gas distribution assets in
exchange for gas reserves in West Siberia.


Czech natural gas firm Vemex has signed a deal with
Gazprom unit Gazexport on gas deliveries to the Czech Republic which bypass
the fprmer Czech monopoly. Gazprom wants to buy or build gas storage in
Hungary, buy into E.ON’s assets in Hungary, such as MOL’s gas business. It
wants to control transit pipelines and expand storage in Ukraine, expand transit
pipelines in Poland, build gas storage in the former Soviet Union’s states. In
Slovakia it owns 49% of gas network SPP together with Ruhrgas and Gaz de
France. It wants to build new gas storage in Romania.


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