Oil and oil-products

Along with natural gas, Gazprom Export sells oil, petroleum products, liquefied gas, sulfur, and a wide range of petrochemical products in foreign markets.

 

CURRENT AREAS OF ACTIVITY

In 2014, Gazprom Export exported around 6 million tons of liquid hydrocarbon products and refined products, to a total value of around $2.5 billion.

Gazprom Export’s product portfolio in 2014 covered a broad range of goods, including crude oil, gas condensate, gas-derived sulfur, fuel oil and gas condensate distillate, liquefied petroleum gas (LPG) and small-scale LNG (ssLNG), alcohols, helium (gaseous and liquefied), and carbon black.

Total refined product sales volumes grew 20% in 2014, owing to increased stable gas condensate production and Gazprom Export’s integration of Gazprom neftekhim Salavat’s products into its export system, leading to product range expansion, sales volume growth, and consequent revenue growth.

Within the framework of efforts to optimize distribution channels and reduce costs, Gazprom Export used various forms of transport in delivering goods to inland and maritime transshipment ports in 2014. The corresponding contracts were concluded on a competitive basis, and under these, comprehensive services were provided to consignors: customs procedures, rail transport, reloading, quality analysis, in-port storage, and freight.

Crude oil and petroleum products

Gazprom Export’s stable gas condensate (SGC) and petroleum products exports grew 10% by volume in 2014, primarily as a result of Gazprom neftekhim Salavat’s increasing sales of SGC and petroleum products.

At the same time, a planned decline was observed in exports of gas condensate distillate and fuel oil, due to modernization of refining capacities and increased production of motor fuels for the domestic market.

Despite the fall of oil prices from $100 a barrel in September to $50 a barrel in December 2014, a number of trading policy optimization measures made it possible to compensate for this fall and achieve revenue growth across Gazprom’s product range relative to 2013.

Sulfur

In 2014, Gazprom Export organized regular export deliveries of sulfur through the mainland ports of Kavkaz and Novorossiisk. It also initiated and established shipments of granulated sulfur to the port of Ust-Luga, as upgrades to this terminal’s technological capacities made it possible to arrange unimpeded transshipment. This diversified the geography of granulated sulfur export flows and reduced the risks of delivery disruptions due to potential (force majeure) closure of traditional shipment routes. Around 3.5 million tons of sulfur (gas-derived, technical, granulated) were exported in 2014.

Liquefied petroleum gas

Liquefied petroleum gas produced by Gazprom Pererabotka and Gazprom Dobycha Orenburg is exported to countries in Central and South-Eastern Europe, as well as to CIS countries. Exports of around 300,000 tons a year are shipped by rail and sea under medium- and long-term contracts.

Oil and gas chemistry products

The launch of Gazprom Gazenergoset’s new helium liquefication unit, located at the Gazprom Dobycha Orenburg helium plant, in June 2014 led to the resumption of liquid helium exports to European countries (Belgium, Germany, Italy) and Turkey.

Activities under the European REACH Regulation

In 2014, Gazprom Export and its Special Representative in the EU, GM&T France, continued to work on supporting Gazprom Group products registered in compliance with the requirements of REACH/CLP Regulations. This included conducting studies of component composition and physical-chemical properties in line with ECHA standards; updating registration dossiers and safety data sheets for products; and successfully passing an inspection by an authorized EU body (inspected by the French Ministry of the Environment).

 

FUTURE AREAS OF ACTIVITY

Eastern Gas Program

Gazprom’s plans for the Eastern Gas Program, besides its gas component as such, call for establishing a number of large-scale processing facilities in Eastern Siberia and the Russian Far East.

As East Siberian fields are developed, large-scale helium and LPG production projects will become a separate area of activity, with Gazprom Group becoming a major supplier of these products to Asia-Pacific Region markets.

The signing of the contract for pipeline gas supply to China was followed by the approval of a comprehensive Action Plan for creating gas production, transmission, and processing capacities using gas from fields in the Yakutsk gas production center. In accordance with this Action Plan, Gazprom Export and other Gazprom Group companies have been tasked with developing an optimal export model for helium and LPG exports and negotiating with potential clients.