Gazprom_investor_day_2019_presentation_watermark
.pdf
vk.com/id446425943
AMUR GAS PROCESSING PLANT: MONETIZATION OF HELIUM AND LPG RESERVES
SCOPE OF THE PROJECT
Russia’s #1 and among top world’s gas processing plants
World’s #1 helium production plant
CONSTRUCTION STATUS AND TIMELINE
2015: |
20.02.2019 |
2024: |
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Start of |
Now: 30 % |
Reaching 100 % |
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construction |
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capacity |
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FEED GAS
PROCESSING
42 bcm |
SUPPLIES TO SIBUR’S |
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AMUR GAS CHEMICAL |
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COMPLEX |
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ETHANE: 2 mmt |
EXPORTS TO CHINA
MARKETED GAS 38 bcm
CHINA
Vanino
EXPORTS TO ASIA
PROPANE: 1 mmt
BUTANE: 0.5 mmt
Vladivostok
EXPORTS TO ASIA |
Tokyo |
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HELIUM 60 mmcm |
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JAPAN |
Pipeline
Railway
Sea routes
Truck
Amur gas processing plant
Gas supply route
Helium supply route
LPG supply route
11 |
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STRATEGY |
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vk.com/id446425943
GAZPROM IN RUSSIA: STRENGTHENING THE LEADING POSITION
GAS SHARE IN FUEL MIX IN RUSSIA |
GAS PRODUCTION IN RUSSIA1,2 |
GAS CONSUMPITION IN RUSSIA1,2 |
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2018 |
2035 |
~53%
GAZPROM’S SHARE IN 2018
SOURCES:
1Draft Russian Energy Strategy until 2035 (as of March 2017)
22018 data is Gazprom’s estimate
3Share of Gazprom’s marketed gas and own use gas
in gas consumption in Russia, preliminary estimates
4 Draft was approved by Russia’s Security Council on November 29,2018
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+5-20% |
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bcm |
+4-5% |
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900 |
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520 |
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875 |
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503 |
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800 |
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480 |
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725 |
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480 |
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700 |
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600 |
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440 |
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500 |
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400 |
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2018 |
2035 |
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2018 |
2035 |
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69% (+4 pp from 2016) |
58% (+3 pp from 2016)3 |
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Alteration of PJSC Gazprom organizational |
The functions of PJSC Gazprom |
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structure is neither expected nor legally |
will be retained in their |
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stipulated |
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entirety |
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Russia's Energy Security Doctrine4 |
Draft Russian Еnergy Strategy until 2035 |
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12 |
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STRATEGY |
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vk.com/id446425943
INVESTMENT IN SUSTAINABLE DEVELOPMENT OF GAS BUSINESS
ANNUAL AVERAGE INVESTMENT (IN REAL TERMS) |
ANNUAL AVERAGE INVESTMENT UP TO 2035 |
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RUB bn1
1,400 |
HIGH GAS DEMAND CASE |
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BY SEGMENT
1,200 |
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1,000 |
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55% |
45% |
800 |
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600 |
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400 |
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Downstream |
200 |
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Upstream |
0 |
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2019 |
2020 |
2021 |
2022-2035 |
BY REGION |
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(annual average) |
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GROWTH TO 2018, % |
2035 |
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81% |
19% |
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Maintenance costs2 |
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Production |
+[13-23]% |
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European Russia and West Siberia (UGTS) |
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Exports to far-abroad countries |
+[22-39]% |
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East Siberia and the Far East |
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1 |
2018 prices, including VAT |
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2 |
Costs of modifying of existing operational facilities, within the Unified Gas Supply System zone(including production, transport and processing) |
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STRATEGY |
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13 |
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vk.com/id446425943
ENVIRONMENTAL POLICY AND ENERGY EFFICIENCY
COST OF ENERGY RESOURCES SAVED
through energy efficiency and energy saving programs
80
RUB 64bn
60
40
20
0
RUB bn |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
Total |
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GAS USAGE FOR TECHNOLOGICAL NEEDS of new trunk pipelines (relative comparison1)
80 |
3-FOLD DECREASE |
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60 |
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40 |
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20 |
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0 |
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RUB bn |
Central Corridor 2 |
Yamal-Europe |
Ukhta-Torzhok |
Bovanenkovo-Ukhta |
Nord Stream 1,2, |
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TurkStream |
14
KEY PERFORMANCE INDICATOR (KPI)
target value by 2025 (compared to 2014 basis year)
Reduction of energy resources |
Reduction of greenhouse gases |
consumption for own |
emissions per unit of products |
technological usage (per unit) |
sold (СО2-equivalent per toe) |
- 5.9 % |
- 6.6 % |
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GAZPROM APPLIES CERTIFIED ENVIRONMENTAL MANAGEMENT SYSTEM (ISO 14001:2015)
1 |
Normalized to same transportation distance (taken as 4,000 km for comparison purposes) |
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2 |
Urengoy–Pomary–Uzhgorod pipeline(via Ukraine) |
STRATEGY |
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vk.com/id446425943
LOW CARBON FOOTPRINT LEADER
CARBON FOOTPRINT OF GAZPROM’S PRODUCTION:
THE LOWEST AMONG ENERGY COMPANIES
Sands/Bitumen (LHS)
100%
90%
80%
447
70%
60%
50%
40%
378 376 375 371 371
30%
20%
10%
0%
Suncor |
Husky |
Petrobras |
Lukoil |
Rosneft |
Canadian Natural |
Crude/Condensate (LHS) |
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NGL (LHS) |
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Gas (LHS) |
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Intensity (kgCO2e/boe) (LHS) |
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500 |
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450 |
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400 |
363 |
357 |
357 |
358 |
355 |
355 |
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350 |
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352 |
353 |
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348 |
350 |
350 |
347 |
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346 |
346 |
345 |
337 |
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335 |
330 |
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323 |
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315 |
300 |
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250 |
Marathon Oil |
Occidental |
Hess |
Chevron |
Murphy Oil |
BP |
ConocoPhillips |
ExxonMobil |
Devon Energy |
Apache |
Total |
Eni |
Statoil |
OMW |
Shell |
Anadarko |
BHP Billiton |
Repsol |
Encana |
GAZPROM |
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15 Source: CDP (2017)
STAGES IN REACHING THE
CLIMATE CHANGE GOALS
SWITCHING TO NATURAL GAS from less ecologically friendly fuels (coal power, petroleum motor fuels)
Introduction of METHANE-HYDROGEN in various sectors (without costly infrastructure changes)
Transition to hydrogen energy based on efficient low-emission technologies of
HYDROGEN PRODUCTION FROM METHANE
Proposed measures, if implemented, lead to significant emissions reduction (cumulative, EU example)
Up to 18 %
Up to 35 %
Up to 80 %
Gazprom’s GHG Emissions |
Gazprom is the leader of annual |
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CDP Russian climate rating |
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Reports are verified by KPMG |
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STRATEGY
vk.com/id446425943
GAZPROM AT A GLANCE
SHARE IN RUSSIA’S GAS PRODUCTION |
CONVENTIONAL RESERVES |
VERTICAL INTEGRATION AND |
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SINGLE EXPORT CHANNEL |
2018–2035 |
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2/3+ |
~100 % |
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MARKET SHARE |
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EUROPE |
CHINA |
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2018–2035 |
2018–2035 |
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35%+ |
0%13% |
IMPORT INDEPENDENCE |
CONTRACT PORTFOLIO |
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PRODUCTION AND TRANSPORT1 |
3+ tcm |
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~ 95 % |
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2018 |
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1 |
Excluding equipment for LNG complex |
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2 |
I.е. nominal capacity of Nord Stream 2, TurkStream, Powerof Siberia |
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16 |
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ADDITIONAL TRANSPORT
CAPACITY2
~125 bcm
TO BE LAUNCHED IN 2019
#20251 HELIUM PRODUCER
IN THE WORLD
2035 |
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#1 |
SUPPLIER |
TO EUROPE |
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AND CHINA |
AVERAGE INVESTMENT
(GAS BUSINESS)
1 2018–2035
~RUB trln / year
At 01.01.2019 exchange rate (~ USD 14 bn)
STRATEGY
vk.com/id446425943
EXPORT
ELENA BURMISTROVA
Director General,
Gazprom Export
vk.com/id446425943
GAZPROM BREAKS ONE RECORD AFTER ANOTHER
EUROPEAN GAS BALANCE
100% |
4% |
8% |
8% |
3% |
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5% |
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8% |
4% |
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9% |
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11% |
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90% |
17% |
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10% |
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11% |
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13% |
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13% |
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10% |
11% |
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80% |
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70% |
27% |
26% |
30% |
30% |
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31% |
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33% |
34% |
37% |
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60% |
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50% |
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40% |
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30% |
52% |
53% |
52% |
56% |
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53% |
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48% |
47% |
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46% |
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20% |
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10% |
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0% |
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2011 |
2012 |
2013 |
2014 |
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2015 |
2016 |
2017 |
2018E |
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Indigenous production |
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Gazprom's export |
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LNG |
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Other Imports |
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In 2018 Gazprom’s sales to the European market were record high of 201.8 bcm1 compared with 194.4 bcm in 2017 and 150.3 bcm in 2011.
Gazprom’s share in European consumption was up to 36.7% in 2018 vs. 34.2% in 2017 and 27.3% in 2011
Gazprom met about half of the incremental demand in 2018 and proved its ability to fill in growing supply/demand gap
While modestly increasing their share in 2018, LNG supplies to Europe still remain significantly below the 2011 record high level
Gazprom average export price increased by 24.6% yoy, up to $245.5/mcm
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Source: PJSC Gazprom,Eurostat, National Statistics, IEA, IHS Markit |
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18 |
1 |
Under Gazprom Export and Gazprom Schweiz contracts |
EXPORT |
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vk.com/id446425943
UNFAVORABLE WEATHER CONDITIONS STALLED GAS DEMAND
GROWTH IN EUROPE
EUROPEAN GAS BALANCE , BCM1
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+17.1 % |
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-3.4 % |
600 |
551.4 |
542.1 |
540.5 |
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541.8 |
568.8 |
549.5 |
485.6 |
506.8 |
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500 |
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400 |
47.5% |
46.5% |
47.7% |
44.6% |
47.9% |
51.9% |
53.6% |
53.7% |
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300 |
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200 |
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52.5% |
53.5% |
52.3% |
55.4% |
52.1% |
48.1% |
46.4% |
46.3% |
100 |
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0 |
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In 2018 European demand for natural gas was down by 19 bcm compared with 2017 due to unfavorable weather conditions but was still 64 bcm above 2014.
Gas demand recovery trend originated from structural factors. In 2018 natural gas retained its position in European power generation
Declining indigenous production over the last years contributed to increased need for import
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018E |
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Indigenous production |
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Imports requirementsCon umptionConsumption |
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1Hereinafter except as otherwise noted: European countries |
GCV = 8,850 kcal/cm, t = 20°C |
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19 |
with Turkey (excluding CIS and Baltics) |
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Source: IEA, Eurostat, National Statistics, IHS Markit |
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EXPORT
vk.com/id446425943
MAJOR SUPPLIERS TO EUROPEAN MARKETS
DELIVERIES BY EUROPE’S MAJOR EXPORTERS AND PRODUCERS, BCM
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201.8 |
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Exporters |
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Internal producers |
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194.4 |
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200 |
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2017 |
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2018 |
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150 |
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134.8 |
130.5 |
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100 |
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49.4 |
48.4 |
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45.0 |
43.7 |
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39.5 |
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50 |
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35.4 |
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36.9 |
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24.1 |
23.4 |
26.5 |
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0 |
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PJSC GAZPROM |
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ALGERIA |
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QATAR |
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OTHER LNG |
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NORWAY* |
1 |
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UNITED |
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(INCL. LNG) |
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KINGDOM |
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1Including domestic consumption, pipeline and LNG deliveries from Norway to the European market, but not LNG to Asia and America
Source: PJSC Gazprom, Eurostat, National Statistics, IEA
20
In 2018, Gazprom marked another record year, while deliveries of other suppliers except for LNG contracted
The Netherlands inched further on the path of becoming a net importer
On 2 March 2018, Gazprom set an absolute record in terms of daily export deliveries at 713.4 mmcm/d, demonstrating its robust ability
of being a swing supplier at a time of demand spikes
EXPORT