Marketing

Gas deliveries by Gazprom Group in 2008

Russia
287 bcm of gas

Europe
184,4 bcm of gas

CIS and Baltic states
96,5 bcm of gas

America and Asia-Pacific
454 thousand tons of LNG

Marketing

In 2008 Gazprom Group sold 567.9 billion cubic meters of gas, of which 287.0 billion cubic meters was supplied to the Russian market, 96.5 billion cubic meters – to the CIS and Baltic region and 184.4 billion cubic meters – beyond the former Soviet Union.

Gas deliveries to the Russian market account for over 50 per cent of Gazprom’s overall gas sales. Together with the Russian Government the Company takes a number of actions aimed at developing the Russian gas market in conformity with the market principles.

Since 2006 when the respective Federal Law took effect Gazprom has enjoyed the exclusive right to supply gas beyond Russia. The Company’s export strategy hinges on an integrated export channel and a system of long-term contracts. Nowadays Gazprom supplies around one third of the total gas imports to Western Europe. The main buyers of Russian gas are Germany, Turkey, Italy and France.

In its relationships with the CIS and Baltic states Gazprom adheres to the policy of a stagewise transition to the contract terms & conditions and pricing mechanisms similar to those applicable in European countries. Moreover, the gas price formula currently used for the Baltic countries makes Gazprom’s deliveries to the region profitable in line with European levels.

Gazprom’s marketing strategy in the American and Asia-Pacific markets stipulates consecutively boosting liquefied natural gas (LNG) supplies. Between 2005 and 2008 the total LNG sales through spot deals reached 1.2 million tons (1.7 billion cubic meters).

Gazprom is the majority shareholder in the Sakhalin II project. In 2009 the first Russian LNG plant was brought online as part of the project. The entire output will be supplied to Japan, South Korea and North America.