GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, - - PowerPoint PPT Presentation

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GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, - - PowerPoint PPT Presentation

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, June 8, 2017 Gazproms Resource Base in Eastern Siberia and Russian Far East (bln m 3 , as of January 1, 2017) Gas reserves in Gazprom Groups licensed blocks: + 1 + 1


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GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

Moscow, June 8, 2017

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Gazprom’s Resource Base in Eastern Siberia and Russian Far East

(bln m3, as of January 1, 2017)

A+B1+C1 B2+C2 D (resources)

,

  • ffshore Sakhalin

Island

Irkutsk Region 1,459.5 Republic of Sakha 464.8 Krasnoyarsk Territory 2,995 203.6 97.3 469 1,715.6 1,079.4 549.8 844.0 48.2 Kamchatka (onshore + offshore) 12.1 0.9 1,621.4

Gazprom’s licenses

Location Number Sea of Okhotsk shelf 5 Kamchatka Territory 3 Republic of Sakha 5 Irkutsk Region 5 Krasnoyarsk Territory 15 Amur Region 2

TOTAL 35

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Gas reserves in Gazprom Group’s licensed blocks: +

1+ 1 – 4.23 trln m3 2+ 2 – 1.69 trln m3

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Planned gas production: 5.5 bln m3 per year Projected number of development wells: 7 units 5 development wells built 2 wells currently in operation Production drilling performed by Gazprom-owned semi-submersible floating drilling rigs (Polyarnaya Zvezda and Severnoye Siyaniye) Results in 2016: ― 2 development wells built and tested ― 2 development wells drilled into pay zone Plans for 2017: ― to complete construction of 2 development wells

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Kirinskoye Field Development Project

ONSHORE PROCESSING FACILITY SUBSEA PRODUCTION SYSTEM

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Planned gas production: 21 bln m3 per year Production drilling to be performed by Gazprom-owned semi-submersible floating drilling rigs (Polyarnaya Zvezda and Severnoye Siyaniye) Following activities implemented as planned in 2017:

  • selection of core process equipment supplier
  • preparation of design documentation for

construction of development wells

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Yuzhno-Kirinskoye Field Development Project

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SLIDE 5

Power of Siberia Gas Trunkline, 
 Chayandinskoye and Kovyktinskoye Fields

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Length of Power of Siberia gas pipeline: around 3,000 km
 Diameter: 1,420 mm 
 Pressure: 9.8 MPa 
 Annual export capacity: 38 bln m3 of gas Planned gas production from Chayandinskoye field: 25 bln m3 per year Planned gas production from Kovyktinskoye field: 25 bln m3 per year

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Sakhalin – Khabarovsk – Vladivostok Gas Transmission System

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Length: over 1,800 km
 Diameter: 1,200 mm 
 Pressure: 9.8 MPa


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SLIDE 7

Belogorskaya area is located near Amur GPP. At present, 3D seismic surveys are being conducted. Planned exploration activities will be completed after 2020. Angarskaya area is located near Irkutsk. Possible creation of caverns is being studied Blagoveshchenskaya area is located near

  • Blagoveshchensk. Two stages of 3D seismic

surveys are finished. It is planned to drill two prospecting and appraisal wells in 2017.

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Geological Exploration to Identify Potential Sites for UGS Facilities in Eastern Russia

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Planned Export Routes for Amur GPP Products

Propane and butane

  • Delivery to Russia’s Far East in railway cars for

transshipment via specialized terminal

  • LPG deliveries to buyers by refrigerated ships of VLGC class
  • Commodities to be sold to buyers on FOB or CFR terms
  • Main sales markets: Japan, South Korea, and other Asia-

Pacific countries

  • Planned delivery volume: up to 1.5 mln t per year

Liquefied helium

  • Shipments in special helium tank containers
  • Road transportation to logistic hub located near container

ports

  • Delivery of containers to buyers in ports
  • Main sales markets: China, Japan, South Korea, Taiwan, and
  • ther countries
  • Planned delivery volume: up to 60 mln m3 per year

Svobodny settlement

Japan

LPG tanks Amur GPP Gas carriers and container ships LPG terminal Helium trucks Helium hub

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SLIDE 9

2016 results:

  • Gas production: 17.45 bln m3
  • LNG production: 10.93 mln t
  • Liquid hydrocarbon production: 5.51 mln t

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Sakhalin II Project

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Natural Gas Deliveries to Chinese Market

Pipeline gas supply to Chinese market is among Gazprom’s priorities in Asia. Between 2015 and 2017, considerable success was achieved in expanding strategic partnership with Chinese companies

Existing and potential areas of cooperation with Chinese partners

PIPELINE GAS SUPPLIES LNG SUPPLIES UNDERGROUND GAS STORAGE NGV FUEL AND SMALL-SCALE LNG GAS-FIRED POWER GENERATION SCI-TECH COOPERATION OFFSHORE GAS EXPLORATION AND PRODUCTION

Pipeline gas supply routes from Russia to China Key agreements signed between 2015 and 2017 to start supplying natural gas from Russia to China Eastern route ▪

The Agreement on design and construction of Power of Siberia’s cross-border section, including a crossing under the Amur River, was signed in December 2015;

The EPC contract to construct a crossing under the Amur River within the cross-border section of the Power of Siberia gas pipeline was inked in September 2016.

Western route ▪

The Heads of Agreement for gas deliveries to China via the western route was signed by Gazprom and CNPC in May 2015.

Project for natural gas supplies from Russia’s Far East ▪

Gazprom and CNPC inked in September 2015 the Memorandum of Understanding for the project of pipeline gas supplies to China from Russia’s Far East. Eastern route Western route Project for gas supplies from Russia’s Far East

India Mongolia China

Beijing Shanghai

30 bln m3 38 bln m3

  • Gas pipeline under construction
  • Potential supply routes

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Gazprom Group’s LNG Business in Asia-Pacific Region

▪ Asia-Pacific region remains important market for LNG supplies from Gazprom Group’s trading portfolio. ▪ LNG consumption in Asia-Pacific countries is expected to continue growing. ▪ Further increase in LNG supplies to Asia-Pacific countries (including by implementing Company’s LNG projects in region) is among Gazprom Group’s priorities.

Sakhalin II Third production train within Sakhalin II project Taiwan Japan Philippines India China Singapore Bangladesh Thailand South Korea Indonesia

Gazprom Group’s LNG business in Asia-Pacific region

  • existing

LNG markets in Asia-Pacific:

  • emerging
  • existing

Routes for Gazprom Group’s LNG supplies:

  • planned
  • operational
  • planned

LNG plants with Gazprom Group’s participation: Project of LNG plant’s third production train, Sakhalin II

▪ Annual capacity: up to 5.4 mln t of LNG ▪ In 2015, Gazprom and Shell signed

Memorandum on said project

▪ FEED for said project is under development ▪ Scheduled for commissioning in 2023–2024

Malaysia Vietnam

Prospects for LNG demand in Asia-Pacific countries

4 3 2 1 88 175 263 350 92,7826 68,5085 44,8945 27,6 40,0215 29,0168 24,3763 20,4 66,4327 58,8888 46,7817 27,2 37,4013 35,6236 34,8289 33,7 71,881 72,5192 76,4069 83,5 * Taiwan, Bangladesh, Vietnam, Indonesia, Malaysia, Pakistan, Singapore, Thailand, Philippines Source: IHS Markit

  • Japan
  • South Korea
  • China
  • India
  • Other Asia-Pacific countries*

mln t

Gazprom Group’s LNG supply markets

2 4 6 8 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3,7 3,6 3,4 1,5 1,4 2,3 1,9 1,4 0,5 0,3 0,3 0,1 Japan – 45% India – 13% Taiwan – 15% UAE – 4 %

  • ther DES supplies – 8%

mln t FOB supplies – 2% Argentina – 11% Mexico – 4%

  • DES, Asia-Pacific countries
  • DES, other countries
  • FOB

Gazprom Group’s LNG supplies to Asia-Pacific countries from other regions

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