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Domestic sales

In 2018, Gazprom delivered 365bcm of gas to Russian customers via the UGSS (a 3.0% increase, mainly weather-related). Of this, 230bcm was represented by volumes that Gazprom had produced or which it had purchased from others. We estimate that 8bcm of

Gazprom’s gas, or gas purchased from others, is consumed locally before entering the UGSS, with another 32bcm sold by other means (e.g. LNG). We also estimate that there was 77bcm of gas produced by others that was consumed locally, shipped directly to consumers (bypassing the UGSS), re-injected into the reservoir or simply flared.

The breakdown of Russian 2018 domestic gas demand by segment is shown in Figure 106. Power and heat generation (36%) and households (12%) were the reservoir biggest segments. The balance was accounted for by sales to utilities (9%; i.e. sales to distributors), and consumption by the oil industry (9%), metallurgy (6%) and other (28%) industrial customers.

Figure 106: 2018 Russian domestic gas volume sales by segment

Renaissance Capital

20 June 2019

Russian oil & gas

365bcm delivered by Gazprom to Russian customers, up by 3.0% YoY

Power generation is the largest customer

Other

28%

Power and heat generation 36%

Oil industry 9%

Household consumers Metallurgy 12%

6%

Housing and utilities 9%

Source: Gazprom

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