LNG

Developing the LNG business is one of the key priorities of Gazprom Group operations, aimed at increasing export volumes of natural gas by entering new markets inaccessible to pipeline supplies. For over a decade now, Gazprom Group has been actively ramping up volumes of its LNG trading portfolio both through the implementation of own projects as well as through LNG purchases from third parties.

The aggregator of LNG volumes and operator of the Group’s trading portfolio is Gazprom Marketing & Trading Company. Taking a portfolio approach to LNG trade operations makes it possible to react quickly to changing market conditions, follow the geographical diversification of supplies, and optimize transportation costs.

The basis of Gazprom Group’s LNG trading portfolio currently consists of LNG supplies from the Sakhalin-2 project. Additionally, LNG is also purchased from third parties under fixed-term agreements and spot deals. In 2005–2018, Gazprom Marketing & Trading delivered over 400 LNG shipments of total volume of 27 mln t to the markets of 15 countries, including more than 170 cargoes originated from the Sakhalin-2 project.

The implementation of Gazprom Group’s new LNG projects, including the third production train of the Sakhalin-2 plant, will allow for further growth in Gazprom Group’s supply portfolio, facilitating the geographical expansion of supplies and entrance to new promising regional markets. Gazprom Group’s competitiveness in LNG trading is supported by its extensive trading portfolio, availability of own LNG fleet, and Group’s wide experience in trading operations on the LNG market.

 

Small-scale LNG (ssLNG) exports

We continue expanding Gazprom Export’s presence in Europe’s ssLNG markets, as well as diversifying ssLNG deliveries by road transport and through other logistics options.

In 2017, export sales of ssLNG by Gazprom Export increased from 22,000 to 35,000 t. Despite the fact that the bulk of export growth occurred on the traditional markets of Poland (from 19,300 t in 2016 to 22,500 t in 2017) and Estonia (from 2,200 t in 2016 to 9,400 t in 2017), the company has also installed regular supplies of ssLNG produced by Gazprom Transgas Ekaterinburg to Kazakhstan, and this new destination ranked third by volume of supplies, with 2,600 t LNG supplied. The diversification efforts resulted in the contract for delivering a test ssLNG cargo to Belarus, to the leading Belarussian heavy industry company “Minsk Automobile Plant”. The gas will be used as motor fuel on the innovative APSZ-16 truck which serves for transportation, long-term storage and distribution of LNG.

Gazprom Export expands its presence on the ssLNG markets in Europe and diversifies its ssLNG supplies.

The company markets ssLNG from the existing and developing ssLNG production facilities in Kaliningrad, Kingisepp, Pskov, Petergof, Port of Vysotsk as well as at Portovaya Compressor Plant.

We negotiate on potential cooperation opportunities in joint ssLNG infrastructure projects with Russian and international companies. Such projects can include sea transportation, building of LNG unloading terminals, LNG filling stations and other objects.