Page 143 - RusRPTSept22

9.2 Major corporate news 9.2.1 Oil & gas corporate news
● Gazprom
Germany plans to nationalize the local Gazprom subsidiary. According to German newspaper Die Welt, preparations for a possible nationalisation of the former German subsidiary of the Russian state-owned company Gazprom are ongoing. Germany has allegedly set up a holding company behind closed doors in order to be able to carry out the nationalisation in the short term, Die Welt reported.
Gazpromneft launched a new oil processing unit at its Zima project,
reports Interfax, which will allow production the unit to rise from 2.5mtpa (50kbd) to 5.5mtpa (110kbd) this year, and to 8mtpa (160kbd) in 2023 with the launch of a second stage. Gazpromneft remains a growth story, but logistics challenges are key. Gazpromneft has been a consistent growth story in Russian Oil & Gas for years, and the continued development of the Zima project is a key driver of that. Note that only two years ago Gazpromneft’s annual report targeted a 6.5mtpa (130kbd) plateau production level for Zima, to be achieved in 2024, well below the new target for 2023. Logistics may prove a larger challenge than production for the company in the coming 12-18 months, we think, given Europe’s attempts to impose an oil and product embargo on Russia this winter and efforts by the USA to impose price caps on Russian oil. We expect Gazpromneft and the rest of Russia’s major oil companies to find ways to bypass these restrictions, but it will likely require more than a year to do so, thus limiting the company’s ability to fully utilise its growth potential.
Gazprom's data for the first seven months of 2022:
- Production: 262.4 bcm (-12% or 35.8bcm vs 2021)
- Demand from the domestic market -2% or 3bcm)
- Exports to non-CIS: 75.3bcm (-34.7% or 40bcm vs 2021)
- Gas exports to China +60.9% (in excess to contract quantities) - extraction is down 12% yoy to 262bcm
- EU consumption down by 31bcm (storage up by 43bcm, need additional 30bcm to reach 2019/20 levels)
Gazprom announces Nord Stream-1 to be shut for maintenance for 3 days, per the company’s Telegram channel, from August 31st to September 2nd.
143 RUSSIA Country Report September 2022 www.intellinews.com