Gazprom: Life after Major Construction Projects

Gazprom is close to completing the main gas pipeline construction projects of the previous decade.

Power of Siberia and TurkStream have been launched. More than 90% of Nord Stream 2 is finished and the project is to be completed in the next few months, after all. Resources on Yamal and in Eastern Siberia are being gradually developed.

At the same time, the situation in gas markets – because of a second warm winter in Europe in a row, concerns about transit crisis in Ukraine, the COVID-19 pandemic, and an inflow of LNG – has gone out of control and reached depths unseen in the last 20 years.

The company has had to adapt as a matter of urgency: balance the European gas market and simultaneously optimise its investment portfolio and increase borrowings.

Priorities have changed sharply on the domestic market too.

There is a lull in the camp of competitors and regulators: ideas of radical transformation of the rules of the game or abolishment of the single export channel have gone to the background. Instead, the Russian leadership has set the ambitious task of completing development of nationwide gas supply penetration in two stages within the next 10 years. The search for the instruments and resources therefor has recently become the basis for the operation of the government agencies responsible for the development of the industry.

In spite of a hard time on the market, the long-term development priorities such as diversification of markets and expansion of the product range remain unchanged and will require new mobilisation of financial, managerial, and technological resources.

From the new report you will learn in detail:

• Whether nationwide gas supply penetration is possible and how much Gazprom will have to pay for it
• Whether the plans to restructure the monopoly are still afoot
• What the “perfect storm” in foreign gas markets will result in and whether Gazprom will be able to regain its position in Europe and Turkey
• What the current financial position of the corporation is in a year of a pandemic and whether Gazprom will be able to stand
• What priorities Gazprom has in terms of high value added products
• How Gazprom’s radically restructured management team has performed

Contents of the report: