The Present and Future of Gazprom

Gazprom’s 2010-2011 financial results were phenomenal. An employment contract of Gazprom CEO Alexey Miller, who has been managing the gas giant for 10 years, was prolonged ahead of time for another five years. However, the country’s main company found itself under powerful pressure both on the domestic and external markets.

Authorities actively support expansion of NOVATEK, whose development is limited by a monopolistic character of the gas market, or, to put it differently, by the existence of Gazprom in its current form. This process unfolds without radical moves so far, considering the upcoming elections, but in the next electoral cycle serious reconstruction of the market is possible.

Outside the country Gazprom is also facing problems. Moscow and Brussels have entered tough confrontation over the rules of operation on European markets, as well as over variants of gas transit from the Caspian Sea region. The question of transit through Ukraine is not solved either. There is a complicated dialogue with China. Attempts to develop relations with Japan following the Fukushima NPP catastrophe and revive the project of laying a trans-Korean gas pipeline do not promise fast and obvious dividends.

Meanwhile, there is a necessity to sharply increase investments in gas production and transportation. The respite Gazprom received in the production segment during the crisis drop in the EU demand for natural gas is over.

A new report elaborates on the following issues:

• Changes at Gazprom during A. Miller’s 10 year tenure

  • Revenues and expenditure, efficiency of the company’s operation
  • Situation in the production sector
  • Transportation and marketing
  • HR policies of the monopolist

• Competition with NOVATEK as one of the main intrigues

  • Situation on the domestic gas market
  • Different taxation approaches to companies
  • The future of the single export channel
  • Shtokman vs. Yamal LNG
  • Competition in petrochemistry

• Gazprom on external markets

  • Gazprom’s standing in the post-Soviet area
  • Situation around gas transit to Europe
  • European-Caspian storm
  • Asian vector of development, the future of LNG business

• Forecast of developments

  • The time of grand spending
  • The future of Yamal, Shtokman, Eastern Siberian program, gas processing plants and new pipeline projects
  • Prospects of the Russian gas sector development after Vladimir Putin’s comeback as Russian president

The contents of the report: