Wednesday, March 2, 2016

Gazprom; a global energy company.

Gazprom is a global energy company. Its major business lines are geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as generation and marketing of heat and electric power.

Gazprom was created in 1989 when the Soviet Ministry of Gas Industry was converted to a corporation, retaining all of its assets. Although it is a private company, the Russian government holds a majority stake in the company. Gazprom is involved in the Russian government's diplomatic efforts; distortions of gas prices, and access to pipelines.Gazprom owns a private army.

Gazprom's production fields are located around the Gulf of Ob in Western Siberia. Plans have also been made to mine the Yamal Peninsula. Gazprom's gas transport system includes 158,200 kilometres of gas trunk lines. Projects include Nord Stream and South Stream. In 2011, the company produced about 513.2 billion cubic metres (18.12 trillion cubic feet) of natural gas, more than seventeen percent of global gas production. Gazprom also produced about 32.3 million tons of crude oil and nearly 12.1 million tons of gas condensate.

The company has subsidiaries in industrial sectors including finance, media and aviation, and majority stakes in other companies.

Gazprom views its mission in reliable, efficient and balanced supply of natural gas, other energy resources and their derivatives to consumers.

Gazprom holds the world’s largest natural gas reserves. The Company’s share in the global and Russian gas reserves makes up 17 and 72 per cent respectively. Gazprom accounts for 12 and 72 per cent of the global and Russian gas output accordingly. At present, the Company actively implements large-scale projects aimed at exploiting gas resources of the Yamal Peninsula, Arctic Shelf, Eastern Siberia and the Far East, as well as hydrocarbons exploration and production projects abroad.

Gazprom is a reliable supplier of gas to Russian and foreign consumers. The Company owns the world’s largest gas transmission network – the Unified Gas Supply System of Russia with the total length of over 168 thousand kilometers. Gazprom sells more than half of overall produced gas to Russian consumers and exports gas to more than 30 countries within and beyond the former Soviet Union.
 
Gazprom is the only producer and exporter of liquefied natural gas in Russia.The Company is among Russia’s five largest oil producers and it is the largest owner of power generating assets in the country. These assets account for 15 per cent of the total installed capacity of the national energy system.
 
PJSC Gazprom’s strategic goal is to establish itself as a leader among global energy companies by diversifying sales markets, ensuring reliable supplies, increasing operating efficiency and using scientific and technical potential.

Gazprom is a vertically integrated company, one which owns its supply and distribution activities. Gazprom owns all its main gas processing facilities in Russia. It operates Russia's high pressure gas pipelines and since 2006, it has held a legal export monopoly. Other natural gas producers, such as Novatek, Russia's second largest gas company, are forced to use Gazprom's facilities for processing and transport of natural gas.

At the end of 2008, Gazprom had 221,300 employees in its major gas production, transportation, underground storage and processing subsidiaries. Of these employees, 9.5 percent were in management, 22.9 percent were specialists, 63.4 percent were workers and 4.2 percent were other employees. Gazprom's headquarters are in the Cheryomushki District, South-Western Administrative Okrug, Moscow.

Gazprom is a national champion, a concept advocated by Putin, in which large companies in strategic sectors are expected not only to seek profit, but also to advance Russia's national interests. For example, Gazprom sells gas to its domestic market at a price less than that of the global market. In 2008, Gazprom's activities made up 10 percent of the Russian gross domestic product.

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