Kirill Seleznev Management Committee Member, Department Head, - - PowerPoint PPT Presentation
GAS SUPPLY TO DOMESTIC MARKET. EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM Kirill Seleznev Management Committee Member, Department Head, Gazprom; Director General, Gazprom Mezhregiongaz PRESS CONFERENCE AS PART OF GAZPROMS ANNUAL GENERAL
PRESS CONFERENCE AS PART OF GAZPROM’S ANNUAL GENERAL SHAREHOLDERS MEETING
Management Committee Member, Department Head, Gazprom; Director General, Gazprom Mezhregiongaz
Gazprom Group’s* domestic gas sales
in 2014
Gazprom Group’s earnings from domestic gas sales
in 2014
Gazprom Group’s average domestic gas price
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GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
RUB billion billion m3 RUB per 1,000 m3
– 4.8% +8.2% +3.1%
Market environment
Climate: higher ambient temperatures versus those in previous years. Finance and economics: gas consumption decline in power sector, cement industry, metallurgy and agrochemistry. State regulation: independent producers offer their gas to prominent consumers in high-yield regions at lower prices versus regulated ones.
Market development
In October/December 2014 Gazprom in cooperation with SPIMEX and Settlement & Depositary Company arranged regulated natural gas trading at SPIMEX:
sessions;
regulations to promote further development of exchange gas trade.
* – excluding intra-Group sales
Sales of natural gas produced by Gazprom and other producers (billion m3):
Basic Operating Results of Gazprom Mezhregiongaz in Ensuring Reliable Gas Supplies to Russian Consumers in 2014 2
GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM In 2014 Gazprom Mezhregiongaz was vested with authority of sole executive body of Gazprom Gazoraspredeleniye 2013 2014 Total 2013 2014 Socially significant consumers 2013 2014 Far East (Kamchatka and Primorye Territories, Sakhalin Region) 2015 (projected)
– 4.4% + 4.1%
(heat supply companies (HSC), population, budget-financed companies)
apartments and households
industrial facilities
agricultural facilities
public utility facilities
694,200 km ―
total
length
Gazprom Mezhregiongaz gas grids
232 billion m3 ― of gas conveyed through Gazprom
Mezhregiongaz grids in 2014*
Gas supplied to:
* Gazprom Group’s gas distribution figures do not cover Gazprom Transgaz Kazan facilities
Overdue debt fluctuations for all consumer groups
Companies with debts from RUB 10 mln are listed on monthly basis at http://mrg.gazprom.ru
Consumers’ Debt to Gazprom Mezhregiongaz for Gas Supplied 3
GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
RUB billion
2012 2013 04.01.2015
Russian Ministry of Defense considerably improved situation with its gas payments
04.01.2014 04.01.2015
KES-Holding considerably impaired situation with its gas payments
01.04.2014 04.01.2015
Overdue debts, RUB billion Overdue debts, RUB billion
in gas supplies by Gazprom Mezhregiongaz in 2014
%
in total debt (as of 04.01.2015) Generating companies Heat supply companies (HSC) Budget-financed consumers Population Other consumers 2014 33% 13% 1.4% 18% 34.6% Payments made 105.2% 78.3% 63.1% 89.1% 95.4%
As of 04.01.2014
Shares of relevant consumer groups % % % % % 95.8% 77.7% 84.9% 88.1% 96.3%
As of 04.01.2015
Overdue debts (as of 04.01.2015) RUB 22.1 billion RUB 50.3 billion RUB 2.4 billion RUB 62.4 billion RUB 26.0 billion +39.5% +9.4% +28.9%
Power Generators’ Debt for Gas Supplied by Gazprom Mezhregiongaz 4
GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
Share of TGC-2 and KES-Holding in Total Debt of Power Generators exceeds 75%
Power generators’ overdue debts (as of 04.01.2015) Total debt, including: TGC-2 KES-Holding 22.1 75,8% TGC-2 debt structure (as of 04.01.2015)
Region Debt (RUB billion)
Tver 4.4 Arkhangelsk 3.1 Yaroslavl 1.1 Vologda 0.1 Novgorod 0.12 KES-Holding debt structure (as of 04.01.2015)
and TKS management;
years operated the property (CHPPs, boiler houses and heating grids) leased from TGC-2 in Tver and accumulated a multi-billion gas debt, ceased its activities starting from July 1, 2014;
all the previously transferred CHPPs, three boiler houses and heating grids;
Region Debt (RUB billion) Region Debt (RUB billion) Samara 2.17 Penza 0.35 Saratov 1.02 Udmurtia 0.35 Nizhny Novgorod 0.74 Ivanovo 0.27 Orenburg 0.61 Komi 0.27 Perm 0.59 Mordovia 0.24 Ulyanovsk 0.49 Mari El 0.03 Kirov 0.39 Chuvashia 0.005 Vladimir 0.36 RUB billion
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GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
Region Debt (as of 04.01.2015, RUB billion) Paid Main debtors Region Debt (as of 04.01.2015, RUB billion) Paid Main debtors Dagestan 30.07 38.3% Population Stavropol Territory 3.67 90.3% Population, HSC Moscow Region 12.03 88.6% HSC1 Nizhniy Novgorod Region 3.31 88.2% Population, HSC, KES-Holding Chechnya 11.64 51.8% Population Arkhangelsk Region 3.25 104.8% TGC-2 Tver Region 9.41 75.6% TGC-2, HSC Bryansk Region 3.0 80.9% HSC Kabardino-Balkaria 7.76 58.8% Population, HSC Perm Territory 2.99 89.6% HSC, KES-Holding North Ossetia 7.32 65.6% HSC, Population Orenburg Region 2.69 86.9% HSC, KES-Holding Ingushetia 5.59 42.3% Population Volgograd Region 2.47 86.5% HSC Krasnodar Territory 4.15 90.5% HSC, Population Yaroslavl Region 2.36 92.8% TGC-2 Samara Region 3.96 87.5% KES-Holding Tula Region 2.31 93.6% HSC Saratov Region 3.79 84.2% HSC, KES-Holding Vladimir Region 2.25 82.9% HSC, KES-Holding
1HSC – Heat Supply Companies
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GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM Claims (notices) filed against debtors amounted to
RUB 227.5 billion
Suits brought against debtors amounted to
RUB 87 billion
Court rulings and judgements made within suits in the amount of
RUB 66.8 billion
Debts recovered as a result of enforcement procedures in the amount of
RUB 66.3 billion
Debts assigned by insolvent legal entities to solvent ones amounted to
Assigned debts including payments under previously signed contracts were settled in amount of
RUB 27.3 billion
including individuals
RUB 5.4 billion
including individuals
RUB 2.6 billion RUB 4.3 billion
including individuals including individuals
Improving Operations of Gazprom Mezhregiongaz Group’s Gas Distribution Companies 7
GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
Gazprom Mezhregiongaz Group defined priorities for its gas distribution companies These are:
systems;
maintenance and repair of house and (or) apartment gas equipment;
adverse environmental effect
production activities;
programs;
Separating servicing business as independent activity Improving One-Stop Shop service Expanding and enhancing services
Making Gas Distribution Companies More Client- Oriented
More loyal clients, wider and better service market Pilot service companies established in Bryansk, Rostov, Tula Regions and Krasnodar Territory. More service companies to be established in Leningrad, Nizhny Novgorod, Smolensk, Yaroslavl, Novosibirsk, Kemerovo, Tomsk Regions; Stavropol and Altai Territories and Sochi.
Arranging One-Stop Shop Service within Relevant Companies 8
GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
Addressing One-Stop Shop service Submitting initial documents, applying for specifications Receiving specifications and concluding design & engineering contract Project approval and construction & assembly contract conclusion Equipment and materials acquisition by customer Construction and assembly As-built documents compilation Project submission by customer to supervising authorities Project revision, cutting-in and gas supply start
Signing contract for house gas equipment maintenance
Existing procedure for connecting consumers to gas distribution networks, as implemented by gas distribution companies Procedure for connecting consumers to gas distribution networks, as implemented by service companies1
Visit of customer (individuals)
1 The procedure is based on Gazprom Mezhregiongaz Sever and Gazprom Gazoraspredeleniye Sever’s best practices
Document preparation Design Construction and assembly Pre-commissioning
Service and gas distribution company experts 1 year 1 month2
Addressing One-Stop Shop service Visit to customer Visit to customer Visit to customer Visit to customer
2 The work may be completed during a month period only provided a gas distribution network is up & running and is located within/near the customer’s land plot boundaries
Implementation by Gazprom Mezhregiongaz Group’s Distribution Companies
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GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
GDC grids Consumer’s grids Connection point
pursuant to Russian Government’s Decree No.1314 dated December 30, 2013 Before Now
Existing GDC grids Consumer’s grids Connection point Newly developed GDC grids
In case of technical feasibility of connection, a gas distribution company (GDC) gave out specifications to potential consumers. The latter at their own expense constructed grids to a point of connection to existing grids. In case of technical feasibility of connection, a GDC is
to a consumer’s land plot boundaries using its own funds in the amount established by a local executive authority.
………………………………………………..
Russian Regions Gasification Program Results 10
GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
Gazprom’s investments (RUB billion) Gas pipelines built (units)
Pipeline length (km) Gasification made feasible for boiler houses (units) 53.3% As of 01.01.2006 60.0% 34.8%
Russian regions gasification level
Gasification made feasible for households and apartments (thousand units)
Time period 65.4% As of 01.01.2015 70.3% 54.6%
Total Cities and towns Rural area
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GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM
Gas supplies secured to consumers (billion m3/year) Gas supplied through existing pipelines (billion m3/year)
Time period
Gas supply growth stemming from the Gasification Program results (billion m3/year) Basic pipeline commissioning period – Q IV
New power units* (to be) commissioned under capacity supply agreements between 2014 and 2015 will consume about 1.2 billion m3 of gas within the said period
Gradual growth of gas pipeline loading due to connection of new consumers
In 2014 owing to 2 billion m3 gas supply growth through pipelines laid under the Russian Regions Gasification Program, their loading increased by nearly 5% by early 2015
* CCGT-420 of Cherepovets SDPP, CCGT-420 of Mosenergo CHPP-16, GTU-65 of Mosenergo CHPP-9, CCGT-220 of Mosenergo CHPP-12 and CCGT-420 of Serov SDPP
Consumption is rising due to commissioning of new power units by Gazprom Energoholding
Payment Discipline and Russian Regions Gasification Program Development 12
GAS SUPPLY TO DOMESTIC MARKET EXECUTING RUSSIAN REGIONS GASIFICATION PROGRAM 2014 2015 Investments into gasification (RUB billion)
Investment allocation criteria under Russian Regions Gasification Program
Regions showing largest gas debts and outstanding liabilities in respect of consumer preparation for gas intake are provided with fewer investments, with no new gas supply facilities built, except those under construction since previous years.
Regions failing to meet their
Dagestan, Ingushetia, North Ossetia and Karachay-Cherkessia
Between 2005 and 2014 only 15 Russian constituent entities fulfilled almost to the full their obligations related to distribution grids, boiler houses and households: Astrakhan, Belgorod, Kemerovo, Kirov, Kursk, Lipetsk, Penza, Ryazan, Tyumen, Vologda Regions; Bashkortostan, Kalmykia, Mari El, Mordovia Republics and St. Petersburg. Regions considerably lagging behind in implementing their obligations are as follows: Kaliningrad, Moscow, Novgorod, Rostov, Saratov Volgograd Regions; Khabarovsk, Krasnodar, Stavropol Territories; Adygea, Karelia and Komi Republics