Gazprom inks documents for cooperation in Iran

A Gazprom delegation headed by Alexey Miller, Chairman of the Company’s Management Committee, paid a working visit to the Islamic Republic of Iran today.

In the course of the visit, Alexey Miller met with Bijan Namdar Zangeneh, Iran’s Minister of Petroleum. The parties confirmed their interest in advancing their partnership on a large scale and discussed potential areas of bilateral cooperation.

Alexey Miller and Ali Kardor, Iran’s Deputy Minister of Petroleum, CEO of National Iranian Oil Company, inked a Roadmap. Pursuant to the document, Gazprom will conduct a proof-of-concept study with regard to implementing integrated projects for hydrocarbon production, transmission and processing, including petrochemistry, in Iranian territory.

Alexey Miller, Ali Kardor, and Nasrat Rahimi, Chairman of the Board of Directors of Oil Industry Pension, Saving and Staff Welfare Fund, signed a Memorandum of Understanding to explore the opportunities for joint efforts within the Iran LNG project.

Both documents reflect the willingness of the parties to cooperate along the entire production chain, from extracting gas in Iran to monetizing the product.

Background

Gazprom and Iran’s Ministry of Petroleum signed the Memorandum of Understanding for strategic cooperation in developing Iranian gas fields with subsequent gas transportation and monetization.

National Iranian Oil Company (NIOC), a wholly-owned subsidiary of the Iranian Ministry of Petroleum, is focused on geological exploration, production, transportation and exports of crude oil, as well as geological exploration and production of natural gas.

Gazprom and NIOC signed the following documents:

  • the Memorandum of Understanding for hydrocarbon prospecting, exploration and production within Iran;
  • the Memorandum of Understanding for collaboration within the construction project for the Iran – Pakistan – India gas pipeline;
  • the Memorandum of Understanding for developing a concept for a unified system of gas production, transmission and petrochemistry based in Iran.

Gazprom and Industrial Development & Renovation Organization of Iran, a state-owned subsidiary of Iran’s Ministry of Industry, Mine & Trade, inked the Memorandum of Understanding for joint gas liquefaction projects slated to be implemented in third countries, as well as projects in the field of advanced gas processing and petrochemistry in the territory of Iran.

The first phase of the Iran LNG project provides for the construction of two gas liquefaction trains with the annual capacity of 5.25 million tons each. During the second phase, the facility’s output will be increased to 21 million tons per year upon the construction of two additional process trains.

Iran LNG Сo. serves as the project operator, with National Iranian Oil Company and Oil Industry Pension, Saving and Staff Welfare Fund as the main shareholders.

 



Gazprom and CNPC hold meeting of Joint Coordinating Committee

A regular meeting of the Joint Coordinating Committee (JCC) of Gazprom and CNPC moderated by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Wang Dongjin, Vice President of CNPC, took place in Moscow.

The meeting reviewed the progress of concerted efforts of the companies in the course of 2017, as well as ongoing and future cooperation in key focus areas.

Specifically, a briefing was given on joint actions in the field of underground gas storage, gas-fired power generation in China, use of gas as a vehicle fuel, mutual recognition of standards by the two companies, occupational health and safety of oil and gas infrastructure personnel, and staff training.

During the meeting, the parties discussed the status of the project for natural gas deliveries from Russia to China via the eastern route. It was noted that the project was kept strictly on schedule.

The parties also held negotiations on the project for gas supplies to China from Russia’s Far East.

The JCC co-chairmen approved the action plans for the JCC working groups for 2018.

“The cooperation between our companies is highly dynamic and has a dense business agenda. The regularity of our meetings and the increasingly wide range of topics we discuss are testament to how many common interests we have and how well we understand each other while moving in the same direction. Furthermore, the scale of the joint projects we implement is proof of the strategic importance and potential of our interactions,” said Vitaly Markelov.

Background

Gazprom’s main partner in China is CNPC, a state-owned oil and gas company.

In May 2015, Gazprom and CNPC extended the Agreement of Strategic Cooperation for five years.

In order to supervise the implementation of the Agreement, the Joint Coordinating Committee was set up by the companies. Pursuant to the decision of the Committee, working groups were established in the main areas of cooperation.

On May 21, 2014, Gazprom and CNPC signed the Sales and Purchase Agreement for Russian gas to be supplied via the eastern route (Power of Siberia gas pipeline). The 30-year Agreement provides for gas deliveries to China in the amount of 38 billion cubic meters per year.

In 2015, Gazprom and CNPC inked the Memorandum of Understanding for the project of pipeline gas supplies to China from Russia’s Far East.

In 2016, Gazprom and CNPC signed the Memorandum of Understanding on underground gas storage and gas-fired power generation in China and the Memorandum to explore the opportunities for cooperation in the NGV sector.

On July 4, 2017, Gazprom and CNPC signed the Supplementary Agreement to the Sales and Purchase Agreement for gas to be supplied via the eastern route inked in 2014. According to the document, gas supplies will commence on December 20, 2019.

 



Urdomskoye Gas Pipeline Operation Center of Gazprom Transgaz Ukhta marks anniversary

On December 5, 2017, the Urdomskoye Gas Pipeline Operation Center (GPOC), a large company doing business in the Arkhangelsk Region and one of the 14 GPOCs owned by Gazprom Transgaz Ukhta, marked its 45th anniversary. Currently, Urdomskoye services several vital facilities: a section of a six-string gas pipeline, CS-13 compressor station, as well as a complex of systems and installations ensuring efficient gas transmission. The Center’s inception dates back to the mid-1960s, when the Vuktylskoye gas and condensate field was put into production. CS-13 became operational in Urdoma in 1972, connecting the northern and southern sections of the Ukhta – Torzhok gas pipeline. 1975 can be considered the formation year for the Center: it was then that Urdomskoye evolved into a steadily operating company with a well-knit team who was responsible for the Center’s further development: construction of the second string at the Ukhta – Torzhok gas pipeline and additional workshops of CS-13 for the third and the fourth strings. In parallel with operational tasks, social issues were gradually resolved as well.

“Today, the Center continues its efforts initiated in the early 2000s when the significant projects were implemented: construction of the SRTO – Torzhok gas transmission system, revamp of the third workshop, and overhaul of the system’s linear part. We are glad to see that young people join us, which means that we will have enough human resources to carry out the ongoing projects for the construction of the seventh string of the gas pipeline and the seventh shop. I am confident that our team is able to handle the tasks of any complexity,” said Andrey Shabanov, Head of the Urdomskoye GPOC.

At present, Urdomskoye’s team consists of 609 employees assuring safe and uninterrupted gas transmission on a daily basis.

Background

Gazprom Transgaz Ukhta is a wholly-owned subsidiary of Gazprom supplying natural gas to consumers in nine regions of northwestern Russia and ensuring gas transit to the CIS and Europe. The gas transmission system operated by the company stretches across Russia’s northwestern areas from the Yamal Peninsula-based Bovanenkovskoye field and Baidaratskaya, the world’s northernmost compressor station, to the country’s western borders.

Gazprom Transgaz Ukhta’s areas of operation cover 15,400 kilometers of gas trunklines. In 2016, the company pumped 166.9 billion cubic meters of gas.

The company has 24 branches, including 14 gas pipeline operation centers, and 44 compressor stations with 85 compressor workshops. Gas transmission is performed by 417 gas compressors with a total installed capacity of 5,874.6 MW, while gas distribution is handled by 174 gas distribution stations. There are also ten CNG filling stations in operation.

Gazprom Transgaz Ukhta adopted the ISO 9001:2008 quality management system and the ISO 14001:2004 environmental management system.

The company employs upwards of 13,000 people. It is headquartered in Ukhta, Komi Republic.

 



Leaders in occupational health and safety management among subsidiaries announced

The winners of an occupational health and safety management contest for the subsidiaries of Gazprom in 2014–2016 were awarded at the meeting of the Company’s Management Committee.

The contest was held for the first time. It involved 71 subsidiaries of Gazprom. The efficiency of occupational health and safety management systems was assessed using a set of criteria, including accident frequency rates, working conditions, and qualifications of employees responsible for workplace safety.

Gazprom Transgaz Moscow took first place among the subsidiaries involved in the core areas of business. Gazpromtrans emerged as the winner among the companies engaged in infrastructure support and development. Giprospetsgaz won in the category of specialized organizations.

Background

The contest is aimed at promoting best practices in occupational health and safety management. It will be held on a regular basis, no less often than every three years.

 



Energy efficiency management system receives Gazprom’s Science and Technology Prize

The award ceremony for the 2017 edition of Gazprom’s Science and Technology Prize took place at the meeting of the Company’s Management Committee. It was noted at the ceremony that the total economic benefit of the award-winning innovations, including import-substituting ones, had exceeded RUB 18 billion.

The top prize went to Gazprom VNIIGAZ for the paper entitled “Corporate management system for energy efficiency and greenhouse gas emissions at Gazprom.” The paper offers a comprehensive solution to the challenge of reducing the amount of energy used for process needs and minimizing greenhouse gas emissions. The economic benefit of the system implemented in 2011–2016 totals RUB 11.6 billion.

The second place was taken by the “High-definition technology in production well diagnostics” project presented by Gazprom Georesource.

The author teams of the following projects also received awards:

“Development and introduction of advanced technologies for strength tests, cavity draining and start-up in Gazprom’s gas pipelines” by Orgenergogaz;

“Development, manufacturing and introduction of prototypes of automatic control system for Kvant-R gas compressor unit, RIUS-R automatic process system for compressor workshops, and PK VEGA-R automatic fire-fighting and gas hazard monitoring system using Russian software and hardware” by Gazprom Transgaz Moscow;

“Development and introduction of domestic equipment at facilities of Astrakhanskoye gas and condensate field” by Gazprom Dobycha Astrakhan;

“Design and creation of non-intrusive diagnostics kit for infield pipelines in need of essential repairs” by Gazprom Neft;

“Methodology and software for assessing limit value of pre-investment studies” by NIIgazeconomika.

Background

Gazprom’s Science and Technology Prize was established in 1998. The Prize is an important component of the corporate scientific and technological policy aimed at promoting innovations in the Company’s businesses and maintaining its technological leadership within the global energy industry.

In 2017, Gazprom's subsidiaries submitted 23 projects for the Prize, with 188 authors engaged in the projects.

The papers were assessed by a group of experts from Gazprom and its subsidiaries. The assessment criteria included urgency, novelty, scientific and technological level (research intensity), area of application, scope and economic impact with regard to Gazprom, commercial potential and protectability, and use of domestic products, technologies and equipment.

 



Nord Stream 2 project staying on track

The Gazprom Management Committee took note of the information regarding the progress of the Nord Stream 2 project.

It was noted at the meeting that the project was going according to plan with support from Europe’s leading energy companies. Permits are currently being drawn up. National environmental impact assessment reports were submitted to the German, Danish, Finnish and Swedish authorities, with construction permit applications filed for the corresponding sections of the gas pipeline in the aforementioned countries.

Preparations for the pipeline’s construction are in full swing, with contracts signed for all basic materials, equipment and services required for the project.

The Members of the Management Committee expressed confidence that Nord Stream 2 would be completed on time and brought into operation before the end of 2019.

Background

Nord Stream 2 is the construction project for a gas pipeline with the annual capacity of 55 billion cubic meters from Russia to Germany across the Baltic Sea.

 



Gazprom and Mizuho Bank review cooperation prospects

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Nobuhide Hayashi, Chairman of Mizuho Bank, Ltd., took place in Moscow today.

Nobuhide Hayashi and Alexey Miller

It was noted that Mizuho Bank had been a reliable partner to Gazprom for many years.

Particular attention at the meeting was paid to further cooperation, including the possibility of securing financing for Gazprom’s strategic projects with the help of the bank.

At meeting

Background

Mizuho Bank, Ltd. is a banking unit of Mizuho Financial Group, a leading financial services group in Japan. It has 553 offices around the world (including branches, representative offices, and subsidiaries), among them a subsidiary bank in Moscow. Since 1999, Mizuho Financial Group has actively contributed to many of Gazprom's financial operations, including deals aimed at securing corporate and project financing, as well as transactions with the Gazprom Group's Eurobonds in capital markets.

 



Tests of domestic subsea production system slated for 2020

St. Petersburg hosted today a meeting of the Inter-Agency Working Group on Reducing Dependence of Russia’s Fuel and Energy Complex on Imported Products involving representatives of Gazprom.

The meeting was chaired by Denis Manturov, Minister of Industry and Trade of the Russian Federation. Gazprom was represented at the event by Vitaly Markelov, Deputy Chairman of the Management CommitteeVyacheslav Mikhalenko and Vsevolod Cherepanov, Members of the Management Committee and Heads of Departments, and Pavel Krylov, Head of Department.

The meeting discussed the joint work of the relevant ministries and entities with the purpose of reducing the Russian oil and gas industry’s dependence on imported equipment, technologies and software. A vital link in the common effort is the Scientific and Technical Council for the Development of Oil and Gas Equipment, which includes 14 expert groups in key areas of import substitution. Gazprom’s representatives preside over four of those groups: Technologies and Equipment for Offshore Projects, Subsea Production Complexes, Gas Transportation Technologies and Equipment, and Natural Gas Liquefaction Technologies.

Domestic subsea production systems (SPS) are currently being developed under an order from the Russian Ministry of Industry and Trade with the support of Gazprom. Russian research institutions are engaged in engineering operations to that end. It is planned to produce SPS prototypes in 2019 and to conduct comprehensive tests in 2020. Proposals were developed with the aim of creating import-substituting equipment for offshore drilling rigs. Tests were carried out for offshore seismic and electric prospecting equipment prototypes.

Extensive efforts are underway to solve the problem of dependence on imports in natural gas liquefaction projects. It was noted that Russian companies were already capable of producing the bulk of equipment and materials for such projects. For instance, domestic producers had started to manufacture spiral heat exchangers and cold-resistant steel for LNG reservoirs as commissioned by Gazprom.

Particular attention was paid to the need for a national engineering center and a specialized foundry complex to produce turbine blades for imported industrial gas turbines, which would eliminate imports of spare parts and reduce repair costs. Meanwhile, domestic manufacturers would gain new competencies and obtain a guaranteed sales market.

The meeting resulted in the signing of the Program for Developing Regulatory Documents Regarding Domestic Subsea Production System for Offshore Oil and Gas Fields. The document was signed by Vasily Osmakov, Deputy Minister of Industry and Trade of the Russian Federation, Alexey Abramov, Head of the Federal Agency for Technical Regulation and Metrology (Rosstandart), and Vitaly Markelov, Chairman of the Technical Committee for Standardization (TC 23) “Oil and Gas Industry.”



Russia’s largest acrylic acid plant put into commercial operation

An inauguration ceremony marking the start of commercial operations at an acrylic acid and butyl acrylate production plant owned by Gazprom Neftekhim Salavat took place today in Salavat, Republic of Bashkortostan.

The ceremony was attended by Valery Golubev, Deputy Chairman of the Gazprom Management Committee, Rustem Mardanov, Prime Minister of the Republic of Bashkortostan, Vladimir Markov, Member of the Management Committee, Head of Department of Gazprom, and managers of the Company’s relevant subdivisions and subsidiaries.

Valery Golubev (left) and Rustem Mardanov (center) at inauguration ceremony of production plant

With a design capacity of 80,000 tons of crude acrylic acid per year, the plant is the largest production facility of its kind in Russia. By converting the crude product into commercially marketable glacial acrylic acid, the Company paves the way for creating a facility to manufacture superabsorbents (materials that can absorb large quantities of liquid) in Russia.

Butyl acrylate produced at the plant of Gazprom Neftekhim Salavat (in the amount of 80,000 tons per year) will fully substitute for the imports of butyl acrylate and satisfy the potential demand for the substance in the Russian chemical sector.

Acrylic acid and butyl acrylate production plant owned by Gazprom Neftekhim Salavat

Acrylic acid and butyl acrylate are used in the manufacturing of various household chemicals, including varnishes, paints, laundry detergents, and medical products.

The facility is environmentally friendly thanks to the use of cutting-edge technologies, as the system for the collection, purification and thermal treatment of industrial wastewater and heavy residue of acrylic acid and butyl acrylate prevents any and all harmful emissions from entering the atmosphere.

The project generated some 340 new jobs.

Background

Gazprom Neftekhim Salavat is part of the Gazprom Group and is one of the largest refining and petrochemical complexes in Russia. The company carries out hydrocarbon feedstock processing across the entire cycle and manufactures such products as motor gasoline, diesel fuel, kerosene, other oil derivatives, liquefied gases, butyl alcohols, plasticizers, polyethylenes, polystyrenes, ammonia, carbamide, etc.

Crude acrylic acid is produced from propylene. It is processed into glacial acrylic acid and later into butyl acrylate as it interacts with butyl alcohols.

 



In memory of Alexander Kozlov

Obituary

It is with deep regret that the Gazprom Management Committee announces the passing of Alexander Kozlov at the age of 64 on December 3, 2017.

Alexander Kozlov

Alexander Kozlov started his career in 1975 after graduating from the Moscow State Institute of International Relations under the USSR Foreign Affairs Ministry.

For a number of years, he worked as a government official in positions of responsibility.

In March 2005, he was named Deputy Chairman of the Management Committee of Gazprom, taking charge of maintenance and logistics.

Alexander Kozlov also served as Chairman of the Board of Trustees of the Gazprom School Private Educational Institution and as the coordinator of year-round operations at an Olympic facility – Gazprom’s Mountain Tourist Center in Sochi – including in the lead-up to the XXII Olympic Winter Games and the XI Paralympic Winter Games in 2014.

He was a recipient of state and industry awards.

The Management Committee extends heartfelt condolences to the bereaved family and friends.

Management Committee, Gazprom