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Gazprom Gasification

Company

Gas industry
Since 2021
Russia
North-West Federal District of the Russian Federation
St. Petersburg
197110, nab Admiral Lazarev, d. 24 letters A, †. 918


Top managers:
Gustov Sergey Vadimovich

Owners

+ Rosneft of the Tax Code
+ Gazprom Gas Distribution

2022: The number of gas networks commissioned in Russia over 5 years has decreased three times compared to the end of the 90s due to export orientation

The number of commissioned gas networks in Russia over the past 5 years (2018-2022) has decreased by more than three times compared to 1997-2001. On average, about 7 thousand km per year compared to 22.1 thousand in the 1990s.

Interestingly, the peak of gasification of the territory of Russia fell on the crisis year 1998, when 24.4 thousand km of gas networks were introduced throughout Russia, and the historical minimum was established in 2021 (only 5.3 thousand km of gas networks).

At the same time, the gas networks commissioned, financed from budgetary funds (all levels), have collapsed more than 10 times since the mid-1990s. Moreover, they continue to decline annually, having fallen 4 times in 10 years.

It would seem that there was a lot of money, Gazprom pays record dividends, not only in the dashing 1990s. But here the reason is transparent - the difference between domestic and export prices, the Spydell Finance channel noted.

The average price of gas sales in Russia minus VAT was balanced on average about $60-70 over the past 5 years, while gas was supplied to Europe 4 times more expensive.

Since the early 2000s, Gazprom's economic policy, as well as Russia, has been based on an export orientation and an attempt to seize the European market. For this, tens of billions of dollars were spent, both on the construction of pipelines and on building communications with Western politicians.

In 2022, the gas battle was miserably lost, Gazprom lost over 80% of the sales market in Europe and the market passed to the United States. For more than 50 years (since the late 1960s), the "drilling" of the gas window to Europe has been eliminated in one to two years as a result of the conflict in Ukraine initiated by the United States.

If we try to look for positive aspects in this negative event, then this is an inevitable return to the domestic gas market and an expansion of the potential for using gas in Russia, both among the population and in industry, the electric power industry, the communal sector, and so on, which will require gasification of the regions of Russia as it was in the mid-1990s.

2021: Establishing a company

In July 2021, the Gazprom group was replenished with a new specialized company - Gazprom Gasification LLC, according to data from the SPARK-Interfax system.

Gazprom explained to reporters that the company was created as part of a government order, it can act as a single gasification operator (EOG). At the same time, the decision on a single gasification operator remains with the government.

The founders of the new company are Gazprom Mezhregiongaz LLC (99%) and Gazprom Gas Distribution JSC. The CEO of the new company was the head of Gazprom Mezhregiongaz Sergey Gustov. The company was incorporated on July 12.

The main activity of the new LLC declared the construction of utilities for water supply and sanitation, gas supply.

Also recorded as activities are the distribution of gaseous fuel through gas distribution networks, investments in authorized capital, venture capital investment, including through investment companies, securities management activities, the purchase and sale of own real estate, lease and management of own or leased real estate, consulting on commercial activities and management.

Earlier, the president Russia Vladimir Putin a year ago instructed Gazprom to ensure the "phased completion of gasification by 2024 and 2030" without attracting citizens' funds. The target level of complete technically possible gasification with network gas is the level of 83% (by the end of 2020, the level of gasification in the country reached 71.4%). Gazprom's obligations under the program for the development of gas supply and gasification of the regions of the Russian Federation for the next five years alone, 2021-2025, amount to 526.1 billion. rubles