As for new markets, OAO Gazprom’s marketing strategy provides for increasing supplies of both pipeline gas and LNG. Gazprom Group has been consolidating its positions in the LNG market since 2005 by spot and swap deals effectuated by Gazprom Marketing & Trading. Between 2005 and 2012 the total volume of LNG sales amounted to 8.3 million t (11.0 billion m3). Taking into account the increased scope of LNG trade and marine freight, a special subsidiary company, Gazprom Global LNG, was established in August 2008 to do the LNG business.
In order to be an early entrant into the LNG market, OAO Gazprom has studied the opportunities of taking part in the existing LNG projects by means of acquisition or asset swap.
In 2007 Gazprom became one of the Sakhalin II project participants. Within the project, Russia’s first LNG plant was put into operation in February 2009. In 2010 the plant surpassed its design capacity (9.6 million t per year) by producing over 10 million t of LNG. In 2012 the plant produced 10.9 million t of LNG. The entire output was contracted out based on long-term arrangements. The first carrier containing Sakhalin LNG arrived in Japan in April 2009.
The agreements for LNG supplies from Sakhalin were signed with Shell Eastern Trading Ltd. and Gazprom Global LNG in April 2009. Pursuant to these agreements, Sakhalin Energy will supply some 1 million t of LNG per year to each of the purchasers between 2009 and 2028.
In 2012 Gazprom Group and an Indian company entered into a Purchase and Sale Agreement for liquefied natural gas. The Agreement provides for Russian LNG supply in the amount of 2.5 million t per annum for a period of 20 years.
Moreover, in December 2012 Gazprom Group completed the first LNG supply via the Northern Sea Route (NSR). The successful voyage of the Ob River LNG carrier chartered by Gazprom provides for the opportunity of the full-scale use of the NSR for Russian gas supplies both to the countries of the Asia Pacific and to the European market.
Source: Gazprom
