Development of end-consumer sales

The sale of gas to end consumers is a lucrative gas business segment that allows a company to diversify its sources of revenue. Moreover, direct gas deliveries to end consumers provide an additional guarantee that Russian gas is sold in the liberalized British market. In 2016, gas sales to end consumers in Britain (through GM&T’s subsidiary, Gazprom Marketing & Trading Retail) came to 4.0 bcm.

Gazprom Export annulled its outstanding contracts with the OMV AG and GWH on September 28, 2006. These were replaced with the new contracts, which Gazprom Export signed with EconGas, GWH and Centrex companies for deliveries made for the period from November 1, 2006 through December 31, 2027. Moreover, GWH and Centrex earned the right to make their own direct gas sales in the Austrian market, particularly in the provinces of Carinthia, Styria and Salzburg (with the two companies signing corresponding contracts with the end users). Gazprom Export was thus able to achieve its strategic goal of entering the Austrian end-consumer market.

In order to reach Italy’s end-consumer market, Gazprom / Gazprom Export signed a strategic partnership agreement with ENI on November 14, 2006. Since April 1, 2007, the Gazprom Group has also been able to make Russian gas deliveries to the Italian market through the ENI’s concession of its TAG gas pipeline capacities and gas volumes to Gazprom Export. Delivery volumes will peak at 3 billion cubic meters per year by 2010. The document also provides for the extension of existing gas supplies contracts to Italy until 2035.

Gazprom Export concluded a contract for Russian gas deliveries with the Vemex s.r.o. company in March 2006, which was the starting point of the actual diversification of gas deliveries to the Czech market. Gazprom Group’s further participation with Vemex meant that the company had met its goal of reaching Czech end-consumers.

A new Gazprom Group company was registered in France in July 2006 – Gazprom Marketing & Trading France, whose main objective is to provide gas deliveries to the end-consumers in France.

On October 1, 2016, Gazprom and BASF SE completed an asset swap. This deal resulted in Gazprom increasing its stake in the European gas trading and storage companies WINGAS, WIEH, and WIEE to 100%. WINGAS is mainly focused on natural gas wholesale trade and storage. The company supplies hydrocarbons to customers in Germany, as well as to Belgium, the Netherlands, the UK, Austria, the Czech Republic and other countries. WINGAS customers include urban and regional gas utilities, industrial companies and power plants.