BLUE FUEL - Gazprom Germania · gas market. European gas market outlook Due to declining indigenous production, European additional demand for imported gas will reach 165 bcm in 2025

BLUE FUELMarch 2015/ Vol. 8/ Issue 1

www.gazpromexport.com | [email protected] | +7 (812) 646-14-14 | [email protected] 1© Gazprom Export

www.gazpromexport.com | [email protected] +7 (812) 646-14-14 | [email protected]

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Gazprom Group Enhances its Footprint in European NGV Market

“Blue Corridor-2015” NGV Rally to Hit the Road in May

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Russia and Europe – Moving Forward in Challenging Times


Gazprom Export Global Newsletter

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Ship-to-Ship Transfer: Making the Most of GM&T’s Shipping Assets

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Publishers Contact Info:www.gazpromexport.com | [email protected] +7 (812) 646-14-14 | [email protected]

In this issueMarch 2015/ Vol. 8/ Issue 1

BLUE FUELGazprom Export Global Newsletter

To Our Readers: Gazprom Export’s New Address .....................................................4

Russia and Europe – Moving Forward in Challenging Times ....................................5

CNG Remains Highly Competitive amid Oil Price Fall ................................................9

Gazprom Group Enhances its Footprint in European NGV Market ..........................10

Gazprom Leads the Way on LNG in Germany..........................................................11

High-Octane, Easy on the Environment ...................................................................12

“Blue Corridor-2015” NGV Rally to Hit the Road in May ........................................14

Ship-to-Ship Transfer: Making the Most of GM&T’s Shipping Assets ........................15

Gazprom Energy in the Spotlight ..............................................................................16

Gazprom Marketing & Trading Wins ‘Natural Gas House of the Year’ Award 17

E-world 2015 ............................................................................................................18

Russian Gas in the EU - Is Replacement Feasible? .................................................18

The Future of Oil and Gas Projects ...........................................................................21

Gazprom’s Buddy Card .............................................................................................23

Gazprom Germania Presents the 10th Russian Film Week in Berlin .......................24

Synergy in Music in Singapore .................................................................................25

GM&TS Supports Russian Language Studies .........................................................25


www.gazpromexport.com | [email protected] | +7 (812) 646-14-14 | [email protected] 54

Moving to a new house is a milestone in life. In the life of our company this important event happened recently – now Gazprom Export has a brand new home in St. Petersburg, located right in the historical heart of the city.

Our headquarters is a part of the ensemble of architectural monuments – the Aleksandrinskiy Theatre, the Russian National Library, and the Anichkov Palace. Ostrovsky Square is the most renowned achievement of Russian architecture and town planning.

The new Gazprom Export building was originally constructed in 2008/2009 and initially designed as a hotel/casino but was not used for this purpose.

There are seven floors totalling more than 17,500 square meters. The building’s ‘grand style’ exterior reflects its historic architectural surroundings and the neighbouring buildings. The interior is equally impressive, with natural light from the atrium contributing to an airy feel throughout the building.

The new building is also tailored to Gazprom Export’s business requirements. Employees benefit from open-plan offices with break-out areas, meeting rooms, a conference hall and many more amenities. The conference hall for 200 people includes state-of the art multimedia equipment as well as equipment for simultaneous translation and special acoustics. The office features a building management system (BMS)-controlled working environment, which ensures smart use of all maintenance resources.

The fourth, fifth and sixth floors are connected by a unique floating staircase, which looks as if it is hanging in the air. The interior’s grandeur is also enhanced by the distinctive “Neuron Wall” – a bronze art structure designed and created in the UK. The Neuron Wall symbolises Gazprom’s global network and its business power. This global network theme runs through the entire building interior and is featured in various furniture designs and other fixtures and fittings.

To Our Readers: Gazprom Export’s new address

Russia and Europe – Moving Forward in Challenging TimesSpeech at the 8th European Gas Conference in Vienna (Austria) by Elena V. Burmistrova, Director General, Gazprom Export, January 2015

It is a privilege and a great pleasure for me to address this distinguished audience. It’s my first speech at an international conference as Director General of Gazprom Export and I’m happy that this is happening in Vienna. Austria is known to be our time-honored partner in Western Europe.

Today, I would like to share my views with you on the future of the European gas market and the role Gazprom can play on this market.

It is evident that the current commercial and political environment is exceptionally challenging both for the industry and natural gas as a commodity. Turbulent times are when long-term relationships are under strain and undergo a stress-test and when bold decisions and firm actions are essential.

There is no doubt that Europe remains and will remain Gazprom’s top export market, with nearly half a century long history binding us together. Yet, we are always on the look-out for new business opportunities – also outside of Europe. The year 2014 saw the signing of a historic deal to supply 38 billion cubic meters of Russian gas to China for 30 years. Soon enough, we expect gas exported to Asian markets to be comparable to the volumes supplied to our European partners.

True, Gazprom is going eastward, so how will our relationship with Europe evolve in the coming years? To answer this question

let’s first have a look at the prospects for the European gas market.

European gas market outlook

Due to declining indigenous production, European additional demand for imported gas will reach 165 bcm in 2025 and 208 bcm in 2035. Russia’s ample gas reserves, supply capacity and competitive pricing combined with moderate yet gradual growth in demand in Europe will ensure that Gazprom will continue to play a vital role on the European market.

I am confident that natural gas is destined to play a key role in the continent’s fuel mix. After all, one should not forget that it remains one of the most environmentally friendly, economical, and readily-available energy sources. In the long term we expect that new applications for gas in Europe, namely, small scale CHP (combined heat and power stations), bunkering and road transport, will result in additional demand of almost 140 bcm by 2035. The figure is comparable to our company’s current export volumes. We also anticipate natural gas to rebound in power generation in the coming years, although this market segment experienced an apparent growth trend in the use of coal.

Continues on page 6Elena Burmistrova, CEO of Gazprom Export, Mikhail Mokretsov, Vice-Governor of the city of St. Petersburg, Alexey Miller, Chairman of the Gazprom Management Committee

The project involved both the reconstruction and fit-out works. Parts of the building had to be rebuilt to reinforce the foundations and increase it’s the usable office space. An international team of architects and engineers were commissioned to undertake this. The designers developed a unique engineering solution that enabled the reinforcement of the building, whilst preserving its external walls and overall original design.

An international team of experts was carefully chosen to enable best practice – in both design and implementation.

The reconstruction works started in February 2014 and had the floors ready for occupation by the end of the same year. That’s quite impressive for a project of the scale. We encountered other challenges such as changing requirements and regulatory restrictions, but overall we coped very well.

The success of the reconstruction project was possible thanks to the collaboration of many parties including the Gazprom

Export project steering committee and the support of the Saint Petersburg Authorities with special thanks to the city Governor.

The inauguration ceremony took place in December 2014 and was attended by Chairman of the Gazprom Management Committee Alexey Miller, Deputy Governor of St. Petersburg Mikhail Mokretsov, Deputy Chairman of the Gazprom Management Committee Alexander Medvedev, and Director General of Gazprom Export Elena Burmistrova. The move was completed during January 2015.

The open working environment is a new concept for Gazprom Export staff, so it while it may take time to adjust to the new surroundings, everyone enjoys the beauty of the building and the convenience of its central location. We are very proud that Gazprom Export now occupies one of the finest offices in St Petersburg – if not in Russia!



We are committed to contribute to meeting the additional demand for

“blue fuel”.

The fastest pace of demand growth will be seen in the transport sector, a segment where Gazprom is already deeply involved. The Gazprom Group already operates an extended network of compressed natural gas filling stations in several European states, and also promotes the vast use of LNG in transport.

However, despite these positive developments and expectations, the future of natural gas in Europe is currently being called into question due to other newly emerging challenges. Surprisingly, some in the ecologically-wise Europe are starting to doubt the role of natural gas in its energy mix, and even go as far as to advocate that Europe should promote the use of cheap and dirty coal.

This cannot be accepted as a sensible approach. Recent political turbulences have sometimes resulted in negative international sentiment, which is now turning into anti-gas sentiment. This is a worrying trend. Not only for Gazprom, but also for our European partners, for industrial efficiency, for financial rationale in energy development strategy, and even for dealing with harmful emissions and the challenges of climate change.

Let us not forget that natural gas can play a crucial role in achieving ALL of the EU’s environmental goals! Increasing the share of gas in the EU’s energy mix by only 1% can help reduce emissions by 3%, which is no small contribution.

Natural gas is also a promising alternative motor fuel, being much cheaper and cleaner than traditional fuels like petrol or diesel. The market of gas-powered vehicles is more advanced than the market of vehicles running on electricity or hydrogen. The infrastructure for gas-as-motor-fuel deliveries already exists while other technologies still face many obstacles when it comes to their maturity and economic viability.

Finally, natural gas, unlike renewable energy sources, needs no subsidies. What it does need is fair competition, a level playing field.

The future of Gazprom in Europe

Now turning more specifically to the role of Gazprom, I would like to start by reminding you that Russian gas is actually one of the most affordable of all. The pricing formula is based on the principle of fuel alternatives and takes into account the fuel mix of national markets. Besides, it incorporates the peak shaving mechanism that smoothes the effect of eventual oil price shocks for a period of several months. Due to this formula, our prices are fully predictable and are not prone to sharp changes the way oil is, and yet our clients enjoy the benefits of falling oil price.

So, when it comes to gas-to-gas competition, there is no question that Russian pipeline gas is still one of the cheapest options in Europe. Other supply options like LNG are nowhere near as competitive. Many now count on American LNG as a new affordable solution to solve the European energy dilemma. But the comparative analysis shows us that US LNG delivered to Europe on a “Cost plus” basis will never be cheaper than gas on the British hub, NBP. It means that American LNG supplies – if any eventually reach the European market – will be too modest in volume to change the continent’s energy landscape.

When looking at alternatives, we strongly believe Russian gas is going to remain one of Europe’s best choices. Despite the current turbulence, felt by the European energy market, Gazprom’s share remains stable – about 30%. Today, local production in Europe is declining, the political situation in North-Africa remains unstable, and reserves in the Middle East are far from coming online soon for Europe, while Gazprom already provides reliable supplies of blue fuel for our number one partner.

As I said at the very beginning, Gazprom remains and will remain committed to Europe.

We did our utmost to solve our differences with Ukraine’s Naftogaz. We continued to supply gas for months after having received our last payment. We concluded the current ‘winter package’ deal to help Ukraine in the cold season and times of high demand.

Why did we do it? Because being a reliable supplier is our top priority. We cannot allow ourselves to endanger the well-earned trust and confidence of our European partners. We never backtrack on our commitments.

This is also the reason we have in the past years consistently worked on building more reliable supply routes to Europe. We have drawn lessons from the 2009 gas transit crisis. Now, the Nord Stream pipeline has already been up and running for a few years. And it has proven to be a highly reliable route to deliver gas straight from Russia to Germany and further on to other European markets.

We wanted to do something similar in Southern Europe, because we know how difficult it is for those countries to ensure that gas reaches their grids. Unfortunately, our proposals to build the South Stream pipeline ran into the European Commission’s

position, which was not conducive to implementing this project. The problem is not only in the regulations, and not only in the Third Energy Package. The fact is that Bulgaria would not grant permit for the construction of the South Stream pipeline.

Once again, let me reiterate: gas transit through Ukraine is a system problem which has not been solved so far while putting into jeopardy the security of our supplies to Europe year after year. It is evident that neither we nor our European partners can achieve a final settlement, and the Ukrainian non-compliance with the “winter package” due to financial constraints is a clear proof. At present, Ukraine has no more than 10 bcm of gas in its underground storage facilities. It means Ukraine cannot guarantee stable gas transit. This is the key reason why a gas hub at the Turkish-Greek border is the only option to guarantee security of supplies to Europe and ensure market predictability.

In December, Gazprom’s cooperation with Turkey experienced a strategic upgrade, and we have now decided to re-route the pipeline to bring Russian gas to the border of the EU instead. The plan is to pump 63 bcm of Russian gas through the proposed Turkish Stream pipeline. While 14 bcm is destined for the Turkish market, the rest would be available for our European customers at a hub on the border with Greece. I am convinced this new project will serve the best interests of all parties involved.

Continues on page 8

Continues on page 7



CNG Remains Highly Competitive amid Oil Price Fall

Eugene Pronin, Gazprom Export Senior Specialist, IGU WOC5 Chairman

As oil prices keep nose-diving, industry analysts started questioning the competitiveness of alternative fuels for transport versus steadily cheapening petrol and diesel. Amid the unconventional oil boom in the U.S. and weakening demand for oil in Europe and China, petrol prices have seen a sharp decline since mid-2014.

Unsurprisingly, such a situation dramatically changes the behavior of consumers. It forces them, for instance, to travel more (according to American Automobile Association, during the Thanksgiving holiday season 2014, the highest number of Americans since 2007 got behind the wheel) or vote with

their wallet for cars driven by conventional fuels instead of ecologically-responsible but more expensive biofuels or e-mobility options.

The nearest competitor of traditional liquid fuels – natural gas – however, feels very comfortable in this new paradigm. It remains the most affordable and environmentally-friendly transport fuel (see graph).

Given the cyclical nature of the global oil market, it is normal that prices of crude oil and its derivatives follow the curve of rise and fall. The key question is how high they rise, and how deep they fall. We witness national, regional or even global price fluctuations. The last but one global fall of petrol pump prices happened in 2008 – 2010. Then they rose again, reaching previous and even higher levels, and began climbing further in 2013 – 2014. However, previously such temporary drops did not affect the development of the global natural gas vehicle (NGV)

market: the ‘global population’ of NGVs has grown 5.6 times since 2004 and demand for natural gas at least 3.2 times. The below graph shows that CNG prices react more smoothly to oil shocks always preserving the price gap to liquid fuels. There is no reason to expect any changes in this regard neither today nor in the future.

A lower price is not the only advantage of natural gas. The key factor is that natural gas is far less polluting. NGVs emit one quarter less CO2 than cars burning gasoline and 20% less than those using diesel. Natural gas fueled engines emit 95% less nitrogen oxide and do not emit soot at all.

During the past decade the global automotive industry has recognized the unique environmental and economic benefits of CNG and LNG. Today, there are good grounds to forecast that by the end of the 2020s demand for natural gas in transport all over the world may reach 70 to 80 bcm per year.

Sources: EIA, Gazprom export, Europe’s Enery Portal, NGV Communication Group,Metanograph, Automobile Association – UK, NGRUS, LNG24,

Besides the pipelines, we are investing heavily in gas storage infrastructure. That helps provide a stable and flexible supply to Europe. In 2014, volumes of our gas in European UGS facilities exceeded 5 bcm. And the company plans to expand its own underground gas storage capacity in Europe to 5bcm by 2017.

Gazprom has always considered underground gas storage as a key factor of safe and reliable gas supplies to Europe; therefore, the increase of active gas stocks in the European underground gas storage facilities remains a priority for us.

The company plans to increase the volume of active gas available in European UGS facilities through the construction of new, and the expansion of the existing storage tanks. The project of construction of the Damborice underground gas storage in the Czech Republic jointly with Czech MND is one example. Another example is the expansion of the Katharina underground gas storage in Germany. Besides, new storage capacity may be built along the new gas transportation routes in the future.

This all allows us to continue our work as a reliable supplier of gas to Europe. We stand ready to provide European markets with the gas they require. But if it wants it, Europe needs to make sure the right conditions are in place to let market forces play their part. Gas is not a political weapon, it is a commodity.

Next steps

In parallel, Gazprom is exploring other operational activities. As a global company, we are always on the look-out for new business opportunities and we believe Asia presented us with one, which was impossible to decline.

I was personally involved in closing a landmark deal with China last year, and I am very happy that Gazprom is stepping into this new venture.

Of course, the new focus does not mean having to re-focus. Despite our natural drive for diversifying our customer base, we are fully committed to our long-standing and trustworthy European partners with whom we share a history of efficient and beneficial cooperation for almost 50 years. Gazprom Export continues to pursue a diversification strategy that not only increases our market reach, multiplies gas export destinations and business clientele, but also further enhances existing relationships with our customers in Europe.

The relevant obligations on gas supply to China will not affect contracts already concluded with other purchasers of Russian gas. On the contrary, the concept of gas deliveries to China via the

“western route,” which is now the subject of negotiations, stipulates the use of the same reserve base. Gazprom possesses sufficient gas resources and production capabilities to meet these obligations altogether. We are investing billions of dollars and euros to develop the world’s largest gas reserves so that European customers can take advantage of the benefits of the most ecologically-friendly fossil fuel.

We have grounds to believe that the political environment in Europe will be restored to a situation in which we feel welcome again. We are keen to continue doing business and hope the European Union in the future will foster exactly that. Business, pure business – without any political motives.

Russians and Europeans are bound together: by our history, our geography, our commercial relations, and, ultimately, by our common interests. Let us benefit from this mutual dependence, rather than running the risk of breaking it down and parting ways. And let’s allow gas to do what it does best: provide clean energy for the future!



By the end of 2014, the Gazprom Group significantly increased the number of operating CNG and LNG filling stations in Europe and boosted gas sales for transport.

Today, the Gazprom Group operates 44 CNG filling stations and two LNG filling units in Europe. Another six stations run by partner companies are sourcing gas from Gazprom. In comparison, at the end of 2013, the Gazprom Group owned 27 gas filling stations in Europe.

Volumes of CNG and LNG marketed through the network of company’s and partner-operated gas filling stations surged more than nine fold compared to 2013.

The majority of CNG filling stations owned by the Gazprom Group are located in Germany, totaling 27. The Czech Republic and Slovakia, with 17 filling stations, are two further important markets. Poland hosts two LNG filling units which are used to tank gas-fuelled buses in Warsaw and Olsztyn. This is the first and so far the only project in Europe featuring city buses fuelled by liquefied methane.

To promote gas as a motor fuel Gazprom Export together with its partners organizes annual rallies of natural gas-fuelled cars under the name “Blue Corridor”. In 2014, the participants drove along the motorways of Estonia, Latvia, Lithuania, Poland, the Czech Republic, Germany, Austria, Italy, Slovenia, Croatia, Serbia, Hungary, Slovakia and Belarus. Along the route representatives of the Gazprom Group and other industry experts discussed the prospects of the application of the “blue fuel” in the transport sector during round-table events, while gas-fuelled vehicles were exhibited in show-room areas. Returning to Nuremberg and hosting a round-table in the German federal state of Bavaria was of special importance as Gazprom Germania acquired a network of 12 refueling compressor stations in 2013.

The Gazprom Group considers the use of natural gas as motor fuel in Europe as a promising growth market, and plans to build up its network of refueling stations and therefore increase the volume of sales of natural gas as fuel for transport.

Talk of constructing LNG terminals in Germany stretches back decades, but for a long time, that never translated into anything beyond initial planning. Those initial plans promoted by German and other European companies often cited LNG terminals’ potential to reduce dependence on Russian natural gas as a reason for their construction. Large LNG import facilities are already being constructed for this purpose in Świnoujście, Poland and Klaipeda, Lithuania, and are close to completion.

However, a new market segment is flourishing in Germany for LNG as an environmentally-friendly alternative fuel for shipping and other transportation. Hamburg-based Bomin Linde plans to open an LNG terminal in Hamburg harbour. Gazprom has announced its plans to establish an LNG terminal in Rostock, in Germany’s state of Mecklenburg-Western Pomerania, by 2017. The terminal will, among other things, supply fuel to the shipping industry in the Baltic Sea area. Russia is at the forefront of using LNG in transport, and while the final details are yet to be decided following completion of the feasibility study, there can be no doubt about Gazprom Germania’s determination to construct the facility in Rostock.

Gazprom Germania is partnering with Hafen-Entwicklungsgesellschaft Rostock (HERO) on the project. The two companies signed a memorandum of understanding in July 2014. “We look forward to working with Gazprom. LNG has the best environmental and safety balance of all the fuels used to power ships, and that allows shippers to meet strict environmental protection standards,” says Ulrich Bauermeister, HERO’s managing director.

From 1 January 2015, stricter environmental standards will apply to shipping in the North Sea and Baltic Sea. Under the new standards, shipping fuel will be allowed to contain just 0.1% sulphur instead of the 1.0 % currently permitted. Experts cite this as one of the reasons that the use of LNG in the shipping sector will grow in the long term thanks to its low-emissions.

Ships than run on LNG emit significantly lower quantities of pollutants, particularly in comparison with the heavy fuel oil currently used – up to 30 % less carbon dioxide, and over 90% less nitrogen oxide and sulphur dioxide. In addition, LNG is also more cost-effective than diesel.

That’s hugely persuasive for shippers, for whom fuel is one of the largest cost factors. But no shipper will convert their ships to run on LNG until the LNG supply is easily accessible, stable and secure. In other words, there needs to be a network of LNG stations at the ready.

Gazprom Germania’s Senior Managing Director Vyacheslav Krupenkov is optimistic: “The more LNG terminals and filling stations are established, the higher demand will grow. Demand is already greater than supply.”

Rostock is particularly well suited given its existing port infrastructure, says Krupenkov. The terminal is likely to be constructed at the site of the east port, where Gazprom Germania would be able to use existing berths, piers, and quays.

The company is not yet able to supply details on the new terminal’s size and capacity; more information on the potential demand will be available once the feasibility study has been completed. In the long term, Gazprom Germania also plans to expand its Rostock operations to other sectors, and supply LNG to commercial customers, heavy-duty vehicles, and public transport. Germany will continue to be Gazprom’s “most important market in Europe,” says Krupenkov.

Gazprom Leads the Way on LNG in Germany

Gazprom Group Enhances its Footprint in European NGV Market

Gazprom Germania Senior Managing Director Vyacheslav Krupenkov (middle); HERO Managing Director Ulrich Bauermeister (right)



Gripping racing action, an impressive collection of up-and-coming, veteran, and celebrity drivers, and the latest eco-friendly technology: This was the Volkswagen Scirocco R Cup to which Gazprom was exclusive motor-fuel supplier since 2013.

As the Scirocco R Cup race is making way for the Audi TT Cup in 2015, Blue Fuel takes a look at five successful years which culminated in the 2014 season’s grand finale at Hockenheim, Germany, where South African driver Jordan Lee Pepper took the title after an exciting race.

“A fantastic day, I’m over the moon. The race definitely felt like the longest of my life. The championship in the Volkswagen Scirocco R-Cup means so much to me, I can’t put it into words,” said Pepper.

Each season featured nine races, each of which involved 19 up-and-coming drivers and four racing legends facing off in the world’s only single-make racing series that showcased vehicles powered exclusively by natural gas. These engines produce 25% less CO2 than diesel or petrol-fuelled variants, making the Scirocco R Cup the perfect platform for drawing attention to the benefits of natural gas vehicles.

Gazprom started its sponsorship as the exclusive motor-fuel supplier to the Scirocco R Cup, the world’s only single-make racing series featuring vehicles powered with natural gas, in 2013.

“Gazprom’s collaboration with Volkswagen on the Scirocco R Cup sent a strong signal of its commitment to motorsports that are kind to the environment without detracting from the fun of driving,” says Hans-Joachim Stuck, former Formula One driver and President of the German Motorsport Association.

The Cup Scirocco is indeed one of the world’s most environmentally friendly racing cars. Its two-litre turbo was based on the sports version of the production model, the Volkswagen Scirocco R, but powered by compressed natural gas (CNG) and optimized for racing. The vehicle’s CNG engine reduced carbon emissions by 80 % while providing up to 285 PS – more than enough for dynamic manoeuvring and white-knuckle speed.

“Natural gas has enormous potential as a means of using motor vehicles in an energy-efficient, cost-efficient, and environmentally friendly manner. The Scirocco R Cup showed that high performance, eco-friendliness, and high emotions are not mutually exclusive,” says Vyacheslav Krupenkov, Senior Managing Director of Gazprom Germania.

The series’ 25-strong starter grid featured a mixture of promising upstarts and motorsports legends, including past participants such as extreme sportsman Felix Baumgartner, racing icon Nicola Larini, and Formula One world champion Damon Hill.

The 2014 series attracted around 200,000 spectators, and the showcase event held as part of the DTM racing weekend at the Moscow Raceway on 11 and 12 July 2014 – the VW Scirocco R Cup’s first visit to Russia – proved to be a season highlight. 15 drivers took up Gazprom’s invitation to race in the Russian capital. After 13 laps around the 3.91 km Moscow Raceway, it was DTM legend Nicola Larini (Italy) who crossed the finish line first in the 235PS CNG powered Scirocco – followed by ex-Formula One driver Jan Lammers (Netherlands) and the Russian favourite, WTCC driver Mikhail Kozlovskiy.

“My second win in the Scirocco R Cup – my young son will be pleased to see the

trophy!” the elated Larini exclaimed. “It was a nice race, with a lot of action at the head of the field.”

Among those trading paint with the top three finishers were rally stars like Markku Alén (Finland) and sporting luminaries such as Olympic ski-jumping champion Sven Hannawald (Germany) and UEFA Champions League winner Jerzy Dudek (Poland). The full list of competitors was a veritable who’s-who of Russian motorsport, including Dakar champion Andrey Karginov, Russian champion Andrey Sevastjanov, and Mikhail Lepokov from the Volkswagen Polo Cup.

The Scirocco R Cup and its supporting role in the DTM provided an ideal setting for Gazprom Germania to promote the use of natural gas for transport and position it in a positive light. Alongside its cooperation with Germany’s leading motorsport site, www.motorsport-total.de, the company has run competitions, streamed races live over the Internet, distributed flyers, and organized meet-the-press events and expert panel discussions on the potential of the fuel. At the cup showcase in Moscow, media representatives also had the chance to see the tanker truck that delivered the Russian natural gas used to power the racing vehicles (see “How CNG Racing Cars are Fuelled”).

The VW Scirocco R Cup is replaced in 2015 with the Audi TT Cup, Audi’s second single-make racing series after its Asia-based Audi R8 LMS Cup. The Audi TT Cup will also be held as part of the DTM racing championship and is to comprise six races in Germany and two in neighbouring countries.

How CNG racing cars are fuelled

Everyone knows that cars need to be fuelled, and those built for racing are certainly no exception. The methods of doing so

range from the simple fuel cans used in most popular racing series (including NASCAR) to the high-tech fuelling systems seen at Formula One races until 2009. But as the Volkswagen Scirocco R Cup showed, there are other ways to refuel a racing car.

Scirocco R Cup vehicles use special high-grade natural gas from Russia that has a specific methane content tailored to their engines. The means by which the natural gas finds its way into those engines are special as well, as Scirocco R Cup vehicles are fuelled neither by their mechanics nor in the pit lane, but by a mobile tanker located in the driver’s paddock that fuels the vehicles with eco-friendly CNG at a pressure of 200 bar. The process takes about a minute per vehicle.

“The natural gas tanker brings 3.5 tonnes of CNG to each and every race weekend in the Volkswagen Scirocco R Cup. That’s enough for each of the more than 20 starting vehicles,” Mirco Hillmann, Senior PR and Communications Expert at GAZPROM Germania, told journalists at the cup’s Moscow event.

The latest figures from Germany’s Federal Motor Transport Authority show that Volkswagen and Gazprom have their fingers on the pulse: 50 % more CNG vehicles were registered in Germany in 2014 than in the year before – a trend that is expected to continue. “We expect that demand for environmentally friendly motor fuels will continue to grow,” says Hillmann, echoing Gazprom Germania’s plans to be operating over 35 natural gas filling stations in Germany by the end of 2015. It’s that growth that the Volkswagen Scirocco R Cup aimed to promote. And as former professional ski-jumper and Scirocco guest driver Sven Hannawald put it: “The Scirocco R Cup proved that high performance, eco-friendliness, and high emotions are not mutually exclusive.”

High-Octane, Easy on the Environment

Continues on page 13



“Blue Corridor-2015” NGV Rally to Hit the Road in May

Ship-to-Ship Transfer: Making the Most of GM&T’s Shipping Assets

The eighth international OEM-produced natural gas-fuelled vehicles (NGV) ‘Blue Corridor’ rally will start its engines on 25 May 2015 and cross the finish-line on 8 June 2015. “Blue Corridor-2015” will cover an overall distance of 6890 km as NGVs will drive across Europe for 15 days.

As in previous years, the two major organizers of the rally are Gazprom Export and E.On Global Commodities.

The participants of the “Blue Corridor-2015” will drive along the motorways of several European countries. Throughout the rally, representatives of the gas and automotive industries, politicians, ecologists and motor fans will be able to share their views on various aspects of the developing NGV market in Europe.

The “Blue Corridor” rally was inaugurated by the Gazprom Group in 2008. Since 2010, the rally has grown into an event of international scale, being joined by a number of players from the European gas market.

If you have any questions regarding opportunities to participate or support the “Blue Corridor-2015” rally, please don’t hesitate to contact the representatives of the rally’s organizers:

Gazprom Export Eugene Pronin tel.:+7 812 346-61-78 e-mail: [email protected]

E.On Global Commodities Andre Schumann tel.: +7 985 767-11-40 e-mail: [email protected]

Emissions

On 6 December, GM&T completed its first ship-to-ship (STS) transfer of LNG at sea. Originally loaded on board the ‘Pskov’ in Spain, the cargo was successfully transferred at sea off the coast of Linggi, Malaysia, to the ‘Yenisei River’. We asked Gordon Young – Marine Superintendent at Gazprom Global LNG to explain how such transfers are optimising GM&T’s shipping activities.

Are STS transfers of LNG common practice? The first ship-to-ship (STS) transfer of LNG was conducted in Scapa Flow, Orkney Islands in 2007. Since then, transfers between ships in port – where vessels are made fast to a shore terminal – have been fairly regular occurrences. Transfers at sea have been less common, although there’s been an increase in these over the last couple of years.

Why did GM&T need to undertake a STS transfer? By conducting the recent STS operation, the Pskov was able to complete an additional charter that would have been lost to a competitor – and the Yenisei River was employed rather than being idle.

Who decides whether GM&T goes ahead with a transfer – and how long does it take to plan? If the cargo on a GM&T-chartered vessel is operated by the GM&T LNG Trading team and there is a commercial need for such an operation, they would request GM&T Shipping to conduct technical and commercial due diligence.

All three functions in Shipping – Chartering, Shipping Operations and Technical & Marine Assurance - would jointly carry out the preparations involving external stakeholders: owners of the vessels, STS operators, authorities, agents and, importantly, the Masters and the crews of the vessels involved.

If we in Shipping determine that the transfer can proceed, the final decision to go ahead is made by LNG Trading, after which we carry it out.

December’s operation was planned one month in advance. However, transfers can be planned and executed more quickly, provided safety isn’t compromised.

Why was this recent transfer necessary? The LNG cargo was destined for Higashi Ohgishima, in Tokyo Bay, but the Pskov was scheduled to load another cargo in Bonny, Nigeria on 23 December. Without the transfer to the Yenisei River on 6 December, there wouldn’t have been enough time for the Pskov to discharge the cargo in Japan and get back to Bonny in time.

How much LNG was transferred and how long did it take? Some 133,000m3 of LNG was transferred between the vessels. This was close to a full cargo, since the Yenisei River’s maximum capacity is approximately 152,600m3. The entire operation ¬– from when the Pskov arrived at Linggi until her departure – was 63 hours and the actual transfer of LNG took 39 hours.

What are the technical challenges and risks involved? The key factors affecting STS transfers are weather and location, both of which are carefully considered during the planning stage of the operation. Conditions have to be suitable so that the vessels can sit alongside one another without risk of damage to each other – or the environment. It’s also essential to control the vapour generated during the operation. This is done by consuming the excess by operating the ships generators or by burning in the Gas Combustion Units.

What particular safety/security protocols have to be followed? These are much the same as those followed when berthing at a terminal. Guidelines published by the main industry bodies cover all aspects including safety, communications, manoeuvring the vessels, mooring and unmooring, security and emergencies.

What are the commercial benefits to GM&T of STS? The main commercial benefits lie in the added flexibility STS brings to the chartered fleet. And whilst safety of personnel, the environment and assets will always take precedence, future STS operations will further optimise our chartered shipping activities

– and deliver tangible benefits for GM&T’s bottom line.



We asked Jon Feingold, Managing Director of Gazprom Energy to reflect on 2014 and outline and the company’s ambitions for 2015.

How did the Retail business perform last year? 2014 was another successful year for Gazprom Energy. As in previous years, we showed our commitment to customers; giving them good pricing, great service and a lot of flexibility. 2014 also saw us continue to build our brand awareness. I’m delighted to say that we’ve been rewarded for our efforts: the reviews at the end of the year were outstanding – particularly around service – so we finished 2014 on a high - in 2014 Gazprom Energy become the second largest supplier to UK business.

So you’ve got plenty of happy customers? In 2013 our average customer satisfaction rating was 7.9 (out of 10) and in 2014 it increased to 8.1. Our smaller customers are the most satisfied, thanks to the straightforward, hassle-free service we provide. Satisfaction among our third party intermediaries also increased in 2014. In July, our rating from these partners was only 7.1, so we made a concerted effort to improve our service to them in the second half of the year. In just six months, the satisfaction score rose to

7.6 and we’re confident this upward trend will continue.

Crucially, we’ve made customer satisfaction a key driver for every individual in the business. Customers have told us they think we’re already providing great service, and I think we’re the best in the industry. However, I don’t think the energy industry necessarily has a great reputation, so it’s actually more important for us to be good in our own right – and incentivise our employees to deliver that.

What’s been the key to Gazprom Energy’s growth to date? It’s come from building and maintaining great customer relationships, and we’ve achieved that by staying true to the themes of our customer promise, partnerships, solutions, and simplicity. The UK in particular is a very competitive environment; we’ve become a market leader through consistently giving customers what they want, backed up by the very best service and reliability.

Why has that model been so successful? Because it’s not just about price, it’s about offering flexibility and genuine collaboration. If a customer is looking for a different type of product or a different type of billing, we’ll find a way to deliver it. We want them to feel as if we’re their trusted partner, not just another supplier. Of course the price is the hook, but if you fail to impress beyond that, you won’t keep the business.

How does your approach vary between markets? Every market is unique, so we employ different techniques when selling to different countries. So far as the back office is concerned, all retail activity is pretty similar – but when it comes to the front office, it’s all about the relationship, and that’s where a tailored approach is required.

Gazprom Energy in the Spotlight It also depends on the type of customer. In the UK, we deal with two groups: a large broker network and the physical end users. That split exists – in varying proportions – across Europe as well. In the Netherlands we probably have a 50:50 split, in France we conduct virtually all business directly with the physical end user with a very small number of brokers and in Germany we approach end users directly as well as online.

Kurt Pederson recently joined Gazprom Energy as CEO. What has he brought to the business? Kurt has a unique understanding of operating at a corporate level. He’s joined us from Dong and has experience of being a counterparty to Gazprom, so he knows how the organisation

works. He has the direction and the conviction to steer the business, not only to build a robust organisation, but to raise our profile within the Group. In the short time he’s been with us, we’ve started to see his vision for Gazprom Energy and how he’ll take the business forward.

What does 2015 hold for Gazprom Energy? During 2015 everything will move up a notch with our online services, marketing campaigns and product lines, so it’s going to be exciting. Of course, we’re realistic about what we can achieve on pricing, but our success has come from continually looking at improving our service, product line and flexibility with our systems becoming more efficient.

Working with Gazprom Energy – Sheffield Forgemasters International LtdForgemasters explains: “Over the years we have continuously refined our contract until it is effectively a fully-bespoke one.”

The relationship has evolved to include additional products and services; for example, the company trades all its carbon through Gazprom Energy.

With its in-depth knowledge and expertise, the Gazprom Energy team acts as its customers’ eyes and ears on the gas markets. This collaborative partnership, based on daily communication, is helping Sheffield Forgemasters manage its energy challenges, maximise its profitability and maintain its competitive edge.

Sheffield Forgemasters manufactures large-scale bespoke steel components for global customers in a wide range of industries, including defence, oil and gas, power generation and marine. In 2008, recognising that it needed a supplier that could offer greater flexibility and support, the company switched to Gazprom Energy.

At the heart of Sheffield Forgemasters’ requirement was an energy contract that reflected the changing needs of its business. Gazprom Energy’s flexible contract delivers just that – and the company now takes all its gas from us.

Malcom Lee, Energy and Commercial Manager at Sheffield

Gazprom Marketing & Trading Wins ‘Natural Gas House of the Year’ Award On Wednesday 28 January, Richard Pugh, Director of Business Development at Gazprom Marketing and Trading - collected the award for ‘Natural Gas House of the Year’ at the European Gas Conference held in Vienna.

Gazprom Marketing and Trading was selected by a panel of judges based on a number of criteria, including: Being recognised as a leading player in structured trading and origination

• Adding value to the European gas markets

• Securing access to major markets and key trading counterparties in Europe

• Channelling volatility and optionality across the value chain

Being selected to win the award by the judging panel, which consisted of industry experts and specialists from several top institutes, research bodies, and universities highlights that the fruits of our contribution to the gas markets are being recognised.Other award winners included Fluxys for Storage Operator of the Year and Eustream for TSO of the year.




By Alexei Grivach, Deputy Director of the National Energy Security Fund (Russia)

Russian gas and its place in the European Union’s energy balance are always high on the agenda of any discussion of European energy security. The crisis in Moscow’s relations with

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For the third year running, Gazprom Marketing and Trading (GM&T) took a joint stand with Gazprom Energy at E-World in Germany, one of the leading European energy fairs.

The 15th E-world energy and water trade fair and congress took place between 10-12 February, at the conference center in Essen, Germany.

More than 600 exhibitors from across 25 nations participated, including e.on, BP, Dong Energy, GDF Suez, Statoil, Shell, General Electric, Siemens and many more. Over 20,000 trade visitors, experts and decision takers attended the 3-day event.

As in previous years, GM&T and Gazprom Energy had a high profile presence this year, with around 50 specialists attending from Gas, Power and Carbon Trading as well as from our retail business. A drinks reception was held on the first evening

E-world 2015 of the fair with more than 200 delegates attending. Two branded vodka ice sculptures were in the centre of attention – and generated a lot of buzz around our stand during the afternoon.

This event gave both GM&T and Gazprom Energy a fantastic opportunity to make new connections and catch up with peers, industry experts and leading suppliers. It is also a platform for both companies to promote their energy solutions.

Russian Gas in the EU - Is Replacement Feasible?

its Western partners, current and prospective sanctions, and a climate of mutual distrust make these discussions increasingly pertinent – and a direct threat to the mutually beneficial gas sector cooperation, which has developed between Russia and Europe ever since the Cold War era and has proven fundamentally positive for over 40 years.

Be that as it may, the opinion that the EU should stop or reduce its use of Russian gas is being heard quite regularly. When it comes to specifics, however, no one has a recipe for replacing the 25-30% of EU gas demand presently met by supply from Russia. Amid the decline in the EU’s domestic gas production, already limited to a few countries (only eight of the EU-28 can meet at least 10% of their own needs, and only two – the Netherlands and Denmark – are net exporters of gas),

and the actual absence of alternative import sources, not even the active replacement of gas-fueled power generation in the last three years has managed to reduce Russia’s gas market share in Europe. In order to drastically reduce the market share of Russian gas, Europe would have to not only cut its gas consumption, but ensure that these cuts outpace the domestic production decline.

A new report from the National Energy Security Fund, Russian Gas in the EU: Replacement Feasibility and Costs, analyzes the state of the EU’s energy balance, along with gas supply and consumption structure in four EU regions (North-West, South-West, North-East, and South-East), over the period of 2010-2013. Our findings show a noticeable decrease in gas’ share of the energy balance only in Britain and Denmark – gas producer nations, which have seen their domestic gas production fall rapidly in recent years.

What’s more, all this is accompanied by yet another phenomenon: growing demand for Russian gas in North-Western European countries, which up until 2013 had managed to meet their own needs without resorting to net imports from Russia at all. Last year, this was caused by some technical problems with gas supply from Norway – this region’s main import source – in conjunction with the European LNG market’s depression due to unsuccessful competition with Asian buyers. It could well become a long-term trend, however, especially if the EU brings its CO2 emission quota regulation into line with its own “green” guidelines. Right now this market is not only failing to stimulate the replacement of “dirty” fuels, especially in the energy industry and power generation, but is actually leading to a coal renaissance in Europe.

The consumption structure for primary energy sources in the EU is fairly slow-changing. Oil accounted for 34% of consumption in 2010, natural gas for 26%, coal for 16%, nuclear power for 13%, and renewable energy sources – including hydroelectricity and biomass (wood) – for 10%. Last year, oil’s share of the balance remained unchanged; the share of natural gas and nuclear power fell by 1%, coal rose by 2%, and renewable energy sources rose by 1%.

As for hydrocarbons in general, Europe’s dependence on nonrenewable energy sources (other than uranium) has not only failed to decline as EU strategists wish, but has actually risen to 77%. Only a third of this total is made up of the cleanest fossil fuel: natural gas. Gas has been the chief target of attack. In the last three years, its consumption fell by nearly 70 bcm (over 13%). Meanwhile, oil – the most expensive energy source, double the price of gas in Europe – lost just 8% (56 bcm of gas equivalent, or around 51 million tons), while consumption of “dirty” coal actually rose by 11 bcm of gas equivalent.

EU-28 primary energy consumption balance in 2010 and 2013 (bn cubic meters of gas equivalent)



Most of the drop in gas consumption and energy balance share was recorded in the countries of North-Western Europe (down from 32% in 2010 to 27.5%). But in South-Eastern Europe, the leading Russian gas consumer, gas is very close to displacing oil from the top of the energy balance sheet: 32% in 2013, up from 30%.

Gas demand in the EU residential sector showed a negligible decrease. Industrial sector figures remained enviably stable over three years. The EU gas sector’s primary losses are in power generation: a fall by 53 bcm (35%) since 2010 to 97 bcm in 2013. In 2011, gas-fueled power generation decreased by over 16 bcm (11%); this decline accelerated to 17% (22 bcm) in 2012 before slowing slightly to 12.5% (14 bcm) last year.

Most of the gas consumption decline – 39 bcm – in EU power generation was recorded in Western Europe’s most advanced economies (Britain, Germany, Italy, Spain, and France). They also accounted for the highest surge in coal use. Coal consumption in these countries went up by 17 bcm of gas equivalent from 2010 to 2013: around 44% of the drop in gas-fueled power generation.

The displacement of gas by a combination of coal and renewable energy sources is even more apparent. In 2010-2013, electricity output from gas-fueled power plants fell by 157,000 GWh (-29%). Coal-fueled power plants increased electricity output by 130,000 GWh (+42%) in the same period. This is because gas costs around €200 per

thousand cubic meters of gas equivalent more than imported bituminous coal, while the CO2 emissions quota market has effectively collapsed, failing to drive replacement of dirtier energy sources.

The EU’s domestic gas production decline is a fundamental long-term trend. EU gas production has fallen by 34 bcm (17%) in the last three years alone, and is set to lose a further 70 bcm by 2025 (down 43% from 2013).

At the same time, Europe has no chance of securing any significant increase in pipeline gas supply to replace Russian gas without changing Iran’s ‘isolated nation’ status. Algeria is already making intensive cuts to its pipeline gas exports to Europe, primarily to Italy. Norway is approaching the production and export limits of its existing resource base; it is likely to enter the production decline phase by the end of the decade. In the Caspian region the EU has managed to reserve just 10 bcm in Azerbaijan, and these volumes will not be available to the Europeans until sometime around 2025. The EU’s LNG regasification capacities are significantly underutilized. On the one hand, this indicates that the European market, in its current state, is not attractive to LNG suppliers – including European companies contracted to purchase LNG from producers under long-term contracts. On the other, by default, this gives the EU some reserve capacity for increasing its LNG imports in force majeure circumstances, with a

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market-priced surcharge, or if market conditions change. Yet this is not an attractive instrument for supplementing the EU’s gas balance under normal conditions – at least, not as long as LNG demand in Asia-Pacific remains high and expansion of production capacities worldwide remains slow.

Directing just 20-30 bcm of Atlantic LNG to Europe would mean an additional $2.4-3.6 bn a year in direct costs. It would also increase the total cost of all imported gas by around $36 bn, since contract prices are highly sensitive to the pricing of alternative import sources.

And even if this LNG did replace Russian gas, Gazprom’s EU gas sales revenues would grow by $5 bn relative to the status quo. Since reducing energy prices is a priority for the EU, this approach does not appear to be an attractive instrument for partially replacing imports from Russia.

Along with Europe’s overall high gas import requirements, it is also worth noting that the distribution of supply sources

across EU regions is extremely uneven. Russian gas makes up practically all supply to the North-East, and is also dominant in the EU’s South-East. Until recent years, LNG ruled in the South-West. The North-West region has two major pipeline supply sources, as well as the capacity to meet most of its own gas needs from domestic production.

Only the North-West region can reduce supply from Russia relatively easily to 10% of its needs (20-30 bcm) – primarily by halting its own reverse supply to the East. This would, however, only increase Russian gas demand in the EU’s Eastern regions.

In the EU’s East, both Northern and Southern parts, the reserve capacities for increasing supply from other sources are minimal to be able to compensate for Russian gas purchase reductions or even any force majeure circumstances involving gas transit across the territory of Ukraine (practically all gas is supplied via the Ukrainian gas transportation system). LNG terminal construction in Poland and Lithuania will only increase energy costs for consumers in those countries.

The Future of Oil and Gas ProjectsBy Satoru Madono, Founder and CEO of IJIC, an international business consulting boutique (Japan)

Project timeframes and pessimism

Pessimism has been hanging over oil and gas projects as negative factors have been piling up:

plummeting oil prices, sanctions, suspension of challenging projects, increasing volatility in foreign exchange markets, slower growth prospect of the global economy. In this gloomy environment industry observers call for a stop of projects that

lead to a production increase and adapt business strategies to this pessimistic scenario.

Paradoxically, despite overwhelming pessimism, uneasiness and even skepticism over existing oil and gas business models, my instinct, which is based on over forty years of experience in the financial services industry, however, suggests that opportunities are here and we should move in the opposite direction to what the majority of people views as the way to go. Project bubbles are gone and so are those pretentious professionals attached to those bubbles. It is time to select truly valuable projects that are competitive far into the future.

Imagine normal timeframes of oil and gas projects, which stretch far beyond ups and downs of prices and economic cycles, election cycles and negativity hanging over us.



Good projects live long. Whether we like or not, pessimism and optimism come and go within the lifecycle of a project. Take the current oil price volatilities as an example: the oil price will bottom out once it will go down to such a level at which a large number of US shale producers are unable to operate. Such a price would be around the average variable cost of shale producers, with which there will be no room for any producer to accommodate the repayment of debts. Then the price will bounce back quickly. How long will it take? A few years at the most, but likely it will take far less time.

As for myself, just after the first global energy crisis, as a young loan officer of the Export-Import Bank of Japan-JEXIM, the predecessor institution of JBIC, I was in charge of possible financing for a Sakhalin oil development project. The project company SODECO (Sakhalin Oil Development Company) had been established under the sponsorship of the powerful Japan Business Federation. However, the project was not followed through as originally scheduled, primarily because natural gas instead of oil was discovered. The business was stuck and the project was shelved. But that was not an end of the story. After a little over two decades, in April 1997, I was sitting

in London as a director general of project finance of JBIC signing an agreement to provide Sakhalin LNG with financing. The initial Sakhalin oil development project had been transformed into an LNG project in a little over two decades!

Time to Enrich the Project Concept

For many projects the time actually spent on preparation is not so substantial. It is never a matter of decades. If intensively pursued, even for mega-projects, feasibility studies and financial negotiations could be completed within a few years. What happens in between a few decades and a few years? Workloads come and go intermittently, only to provide opportunities for financiers to deal with many projects in parallel, which was what I did. For investors it should be time for real project enrichment.

According to my experience, disproportionately to a long lead time, project studies have all been short and that is true even for successful projects. If more substantial studies had been done with future developments appropriately considered, successful projects would have been even more successful. They would have overcome technological gaps,

Gazprom’s Buddy Card Gazprom’s sponsorship of German Bundersliga football team Schalke 04 goes beyond logo placement on players’ jerseys and banner advertising to include campaigns that are more closely related to natural gas. One such campaign this season has been quick to get the attention of Schalke 04 fans.

The Gazprom Buddy Card campaign saw Schalke 04 fans take an online quiz and the first fan who answered ten tricky questions won the Gazprom Buddy Card, which entitles them to admission to all Schalke 04 matches for themselves and a buddy. The card comes with VIP travel to international away games played in the Champions League, including transport on the team jet and accommodation at the team hotel.

The holder of the Gazprom Buddy Card faces a new challenger at regular intervals and has to defend their card. The challenges are overseen by well-known members and supporters of Schalke, forging a real connection between the club and its sponsor. The challenges are also designed to draw attention to natural gas-related issues. In the first round, challengers travelled in the Gazprom Buddy Taxi, a Volkswagen car fuelled by natural gas, driven by Schalke celebrities including Schalke stadium announcer Dirk Oberschulte-Beckmann. The winner of the Gazprom Buddy Card was also allowed to drive the Gazprom Buddy Taxi himself. Natural gas was, of course, one of the topics covered in the competition for the Gazprom Buddy Card, with a healthy knowledge of natural gas essential to winning the prize.

As German newspaper Handelsblatt pointed out, the Gazprom Buddy Card is a textbook example of delicate, fan-oriented activation. Gazprom’s sponsorship of Schalke 04 is designed to

cater to the interests of the fans, while raising awareness of the benefits of natural gas.

The subject of natural gas in transport was brought to the fore during the first round of the Gazprom Buddy Card challenge. Gazprom’s commitment to natural gas in transport is a significant contribution to ensuring that mobility moves with the times, while being kind to both the environment and your wallet. There are now over 100,000 natural gas vehicles on the road in Germany, and that number continues to rise. One important factor supporting that growth is the expansion of Germany’s network of natural gas filling stations. With around 900 filling stations nationwide, the infrastructure is in place – and is being expanded on an ongoing basis. Gazprom is contributing to that expansion via its German subsidiary Gazprom Germania, which plans to expand its natural gas filling stations to a total of 35 in 2015 – an effort that Timo Vehrs, Gazprom Germania’s Director of Business Development, discussed with Gazprom Buddy Card contestants.

For more information, visit: www.Gazprom-football.com/kumpelkarte http://youtu.be/6HQd3kSUQoQ

logistical bottlenecks, lack of intelligent operations and failures in providing diverse solutions for consumers, which in turn would have eliminated possible rival projects.

Projects studies will be much more important than in the past, since the project paradigm has been changing drastically as innovation will accelerate within the energy industry. Innovations make project participants more visionary and at the same time will force projects to provide better solutions to society by being integrated into a number of other projects. Projects could be combined with innovative logistics, downstream and other industrial developments, creating an entire set of development projects. Efficient project integration is costly and accompanied with a substantial investment risk. However, risk can be mitigated thanks to global standardization in prices and cash flow mechanism, based on which investors can forecast better.

Though innovations have been changing societies and miniaturization has taken over, oil and gas projects have not

changed as drastically as they remain large-scale nature. However, the oil and gas production platform of the future may be bulky, but it is smart as innovative energy and telecommunication technologies are going to be embedded. But such a combination cannot be achieved without the cooperation of parties with very different resources and backgrounds. The mere question of which alliance partner will fit into each project scenario will require significant consideration. However, let’s not waste time with pessimism hanging over us. It is time to find strategic alliances that create project concepts that survive far into the future.

My recommendation is a Russian and Japanese alliance, which is sure to be most productive, have an extensive market and resources, while being rich in human capital. When most are in despair, it is time for real professionals to continue what is right in the long run.




The Russian Film Week in Berlin celebrated its 10th anniversary between 26 November and 3 December 2014. The festival, which was held in association with Gazprom Germania, again featured the latest Russian films of all genres in the original Russian with German subtitles.

What began as a modest, but enthusiastic celebration of Russian film has long since become one of the highlights of Berlin’s film festival calendar – with growing interest and visitor numbers that speak for themselves. No other festival in Germany offers such a comprehensive, compelling window into contemporary Russian film. The Russian Film Week shows audiences in Berlin an image of modern Russia and everything it has to offer in a way that only film can, creating a cultural bridge between Russia and Germany.

The festival opening saw actors, directors, and screenwriters walk the red carpet into Berlin’s Kino International cinema. The Ambassador of the Russian Federation was also on hand to greet the Moscow delegation and 300 representatives of business, government, society, and culture at a reception.

Supporting the arts and culture has traditionally been an important component of Gazprom Germania’s social sponsorship activities. The Russian Film Week Berlin is organized by Interfest and has been supported by Gazprom Germania since its inception and also provides sponsorship to young film-makers and German-Russian student projects. For more information visit www.russische-filmwoche.de

Gazprom Germania Presents the 10th Russian Film Week in Berlin A gala performance by Russian musicians in Singapore marked

the latest success of Gazprom Export’s Synergy in Music series.

The Synergy in Music project, launched in 2012, is part of Gazprom’s initiative to forge deeper intercultural bonds between the flourishing Singapore art scene and Russia’s rich heritage of classical virtuosity. It aims to improve the cross-cultural exchange between Russia and Singapore as well as Asia- Pacific countries.

The latest Synergy in Music event brought six of Russia’s finest musical talents - Alexander Buzlov, Tatiana Samouil, Evgeny Rumyantsev, Andrey Usov and Igor Naidin – to Singapore. Led by world-renowned and multiple award-winning violinist, Vadim Repin, the musicians brought timeless classical pieces to life at an exclusive one-night-only gala concert at the beautifully refurbished Victoria Concert Hall in Singapore.

The proceeds from the concert were used to support the Singapore International Violin Competition.

Synergy in Music 2014 was also marked by significant educational value. During their stay in Singapore the musicians

also held a multi-day series of master classes for students of the Yong Siew Toh Conservatory of Music Schools and other local music students at the School of the Arts (SOTA).

Also in 2015, music lovers across Asia will get a chance to experience the best of Russia’s classical virtuosity as a number of Synergy in Music events are planned throughout the year, strengthening cultural exchange both on and off stage.

Synergy in Music in Singapore

GM&TS Supports Russian Language StudiesGazprom Marketing & Trading Singapore (GM&TS) proudly supports the Russian Language Center in Singapore as part of its support for Russian culture and language promotion in Singapore.

GM&TS’ financial backing will allow the creation of a library at the Russian Language Center which will include textbooks on Russian language, literature, history, culture as well as Russian classical novels and poetry, and materials for bilingual children. Thanks to the donation by GM&TS the library’s books can be used by local readers interested in Russian language and culture as well as by school children from Russia and former Soviet states who study in Singapore.

“The Russian Language Center was established in 2008 and the main problem since then was the lack of educational materials and opportunity to acquire books in Russian in Singapore. We would like to thank Gazprom Marketing & Trading Singapore and its General Director Sergei Edrenkine personally for their support in purchasing the books for our library,” said Ekaterina Drozdova, Director of Russian Language Center in Singapore.

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BLUE FUELwww.gazpromexport.com | [email protected]

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BLUE FUEL - Gazprom Germania · gas market. European gas market outlook Due to declining indigenous production, European additional demand for imported gas will reach 165 bcm in 2025

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