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Gazprom in Asia: a growing footprint

As part of our South East Asia Gas & Power Service we look at key international players that can have an impact into the Energy Industry of the region. This week analysis is about Gazprom, the Russian based company with the biggest world supply of gas. Russia is strategically and geographically connected with Europe and China two major energy users. With Europe there are already several gas pipelines that supply gas to European countries and on the other hand with China they have been having talks about a new gas pipeline for many years now that soon or later will materialise. The new gas pipeline discussions with China have three separate inlet points (Novokuznetsk, Blagoveshchensk and Vladivostok) from the existing Unified Gas Supply System (UGSS) of Russia. The UGSS is the world’s largest gas transmission system including 168,300 km of gas trunklines and laterals, 222 line compressor stations with 3738 gas compressor units totalling 43,870 MW in capacity. Back in 2009 Gazprom opened a strategic office in Singapore to deal mainly with Liquefied Natural Gas (LNG) contracts both long/mid-term and spot trading ensuring the Sakhalin LNG project (50.01% Gazprom) finds gas buyers and plan the supply of new LNG coming from the new LNG projects in Russia with Gazprom involvement. Five years later Gazprom’s LNG supply through mid/long term signed contracts has doubled to 13.7 bcm to be delivered in 2014 and will rise up to 22.3 bcm in 2020.

Asian LNG signed supply contracts with Gazprom

Asian LNG signed supply contracts with Gazprom

Source: Enerdata, World LNG Database

And mid-March week announcement of the signing of Vietnam''s first LNG Master Sales and Purchase Agreement (MSPA) between Gazprom Marketing & Trading and PetroVietnam is another important step in fortifying their presence in the South East Asia region. This agreement is the first MSPA for LNG to be signed in Vietnam, and is intended to secure supplies for PV Gas’ import terminal of Thi Vai. Surely we will hear more about Gazprom playing a key role in the region.