Alexey Miller: “We are focused on implementing priority projects that will have an effect for decades to come — these projects are intended to benefit Russia and millions of Russians”
A Gazprom shareholders’ meeting took place today. The meeting focused on the key results achieved in 2023. Decisions were made on all the relevant agenda items
Gazprom is confidently moving forward. Primarily, we remain focused on implementing large-scale priority projects that will have an effect for decades to come — these projects are intended to benefit Russia and millions of Russians.
Undoubtedly, our projects assimilate fully the development prospects of the global energy market.
Energy consumption across the world is set to increase. This is directly linked to population growth, economic development and accelerating digitalisation. Leading experts estimate that global primary energy consumption will grow by 20 per cent by the year 2050. At the same time, natural gas is forecast to be the most popular form of energy due to its efficiency, technological availability and environmentally friendly properties. Its share in the world energy balance is set to reach 26%; in some scenarios this figure will be even higher.
For Russia, natural gas is a major resource that helps to expand the economy, facilitate industrial production, and housing construction, and improves the quality of life across the country. We are committed to making this resource available to the widest possible range of consumers.
For this purpose, we are carrying out the full-scale provision of gas to towns and villages in the Russian regions. We are building new infrastructure: in 2023 alone, we have installed gas pipelines to 412 villages. And we are clearly moving towards our target figure of 100% in terms of gas provision in those areas of Russia where it remains feasible to technically maintain and run a gas supply.
We are actively working on the pre-gasification process. By the end of 2023, 874 thousand contracts were in place with homeowners to supply gas to the relevant household land boundary. Today, this figure is already approaching one million.
New customers demonstrate the sustainable long-term growth in gas demand. We are already seeing and recording this demand growth. The company process of continuously updating winter and summer records regarding daily gas deliveries executed through our gas transportation system constitute clear examples.
As for foreign countries, China and its dynamically developing economy will undoubtedly remain the leader in terms of gas consumption growth. It should be noted that experts, including Chinese experts, expect gas consumption in China to double by the middle of the century.
Gazprom is steadily increasing gas supplies to the PRC via the Power of Siberia. They will reach the design milestone as early as next year. The pipeline will reach the set export capacity of 38 billion cubic metres of gas per year.
Russian gas is in demand in China. In 2023, our supplies to China exceeded our contractual obligations by 700 million cubic metres. Earlier this year, we continued to update historical records for daily exports to Chinese customers.
In 2027, the Far East route will be launched to supply 10 billion cubic metres of gas per year. When the Power of Siberia and the Far East route reach full capacity, Russia will become the largest gas supplier to China.
We also envisage the future growth of Central Asian economies and the accompanying high demand for energy resources. This factor accounts for the company working comprehensively together with our partners. Our common goal is to expand gas transportation capacity and ensure reliable long-term gas supplies to consumers in Central Asia.
One of the most important events of 2023 was the launch of individual supply lines for the Central Asia-Centre gas pipeline system in reverse mode. Through this new route, for the first time we started supplying Russian gas to Uzbekistan.
Gazprom sees great potential for strengthening relations with all those countries interested in the stable operation of the energy sector based on clean and efficient energy resources. Our company is well positioned to do just that.
Our sustainability is based on our unique production complex and the world’s largest resource base, which we replenish every year.
In 2023, we increased reserves again with a reserve replacement ratio of more than one, launched new production facilities in Yamal, Eastern Siberia and the Far East. We increased underground gas storage capacity to new record levels. At the beginning of 2024, we launched a project that will connect the gas transportation systems in the West and East of Russia. This will increase the flexibility of gas supply to Russian consumers and create new opportunities for the provision of gas supplies.
Of course, the company remains not only focused on gas projects. Gazprom is actively modernising existing power plants. In the East of Russia, the company is building a new thermal power plant necessary for the development of the Eastern sector of Russian railways. We increase production capacity in the oil sector.
Gazprom’s large-scale projects are strengthening Russia’s energy and technological sovereignty. They provide new jobs, significant contributions to budgets at all levels, and powerful incentives for the development of science, industry and the social sphere.
The projects we are implementing today are a contribution to the future of Russia and many generations of Russians.”
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