40th GECF Monthly Gas Lecture
On October 30 the Gas Exporting Countries Forum held the 40th edition of the GECF Monthly Gas lecture with the guest speaker – Deputy Chairman of the Management Committee of Gazprom Mr. Vitaly Markelov, who introduced Gazprom as a global energy company, altogether with the Russian natural gas giant’s “Strategy for Excellence”.
Kicking-off the event, GECF Secretary General Dr. Yury Sentyurin stressed, that the Russian Federation is one of the Forum’s founding Member Countries with an extensive portfolio as regards to the natural gas industry. As per the new 2019 edition of the GECF Annual Statistical Bulletin, based on the primary source data from the GECF Member Countries, Russia holds a volume exceeding 47.5 trillion cubic metres of natural gas proved reserves. The country is the 2nd largest producer of natural gas in the world with a marketed production of more than 700 billion cubic metres (Bcm) in 2018.
The GECF authority has referred to the Russian Energy Vision 2035, which indicates strategic goals – to keep up the positive development of the national natural gas industry and expand the source production by 850-924 Bcm by the document’s horizon. It is expected, that the most endeavors to achieve these goals are to be made mainly by the Gazprom company, which has explicably showcased its impressing capacities and leadership position as a global energy company.
In the very beginning of his intervention Mr. Markelov stated, that the year 2018 was marked by exceptional achievements for Gazprom. The company demonstrated record-high financial results and hit the records of 2017 in terms of production and export of the ‘blue fuel’.
He specified, that being committed to the pledge of increasing the production volumes, Gazprom produced 497.6 Bcm of gas in 2018. This is 5.7% (or 26.6 Bcm) more than in 2017.
In terms of gas export, a record volume of 201.8 Bcm was achieved in 2018, exceeding the previous year’s result is 3.8% (or 7.4 Bcm). Yet another accomplishment: the volume of gas supplies to Europe and Gazprom’s share in the European gas market have reached maximum historical values.
Continuing his remarks, the speaker briefed the audience on the meaningful progress recorded in implementation of such unique in scale and importance projects as the Nord Stream 2, the Turkish Stream, and Power of Siberia, the Northern Gas Transport Corridor.
Gazprom authority pointed out, that the TurkStream gas pipeline, which runs from Russia to Europe to supply gas to Gazprom’s main customers via 2 lines of the throughput capacity of 15.75 billion cubic meters each, is expected to be brought into operation by the end of the year, prior to the anticipated date.
Moreover, gas supplies from Russia to China will begin via the unique in scope Power of Siberia gas pipeline again this December. In terms of its technical parameters and significance for the global gas transportation system, a “gas route” between the world's largest exporter and one of the world's largest consumers occupies an outstanding place among all cross-border gas transmission systems.
Summarizing indeed outstanding achievements, Mr. Markelov emphasized, that this is not the low-hanging fruits, but the results of consistent, tireless work, made by the company’s leadership and staff.
Apart from gas export, the Gazprom group of companies leads gasification of the Russia’s regions, stepping up its activity in the LNG market, and has already emerged as a front-runner in such promising areas as hydrogen and blue hydrogen – he continued.
The lecturer has drawn the audience’s attention to the fact, that environmental risk management occupies a foremost place amongst the Gazprom’s activities. The company commit the environmentally responsible business through implementing disruptive technologies, advanced system of greenhouse gas emissions accounting, and continuous improving of its operating processes. It is a matter of particular pride, that the company's products have the lowest carbon footprint among the world's largest oil and gas companies.
In Mr. Markelov’s remarks strong emphasis was made on the importance of developing the natural gas engines market, given to its unique combination of environmental, economic and technological advantages. Namely, Gazprom is accelerating the conversion of its own vehicles to the natural gas engines, more than 52% of Gazprom’s fleet is already running on gas. The company is also actively developing gas filling infrastructure in Russia and abroad, alongside with promotion of the “Eco Gas” brand.
To build a momentum, Gazprom has launched and is successfully running a project of annual large-scale international NGV rallies. The “Blue Corridor – Gas into Engines” rallies started in 2008 and have already involved more than 30 countries of the world.
In the development of this idea, HE GECF Secretary General added that it is expected that the 2020 route will starts from Doha, pass through Tehran and Baku, and finish in St. Petersburg, Russia. By this way, the rally is set to embrace 4 the GECF Member Country, alongside driving the NGV performance and promoting natural gas as a clean and safe motor fuel.
Dr. Yury Sentyurin also highlighted, that based on the scientifically grounded researches, the GECF shares the Gazprom positive towards NGV and expects the transport sector to give a new start and provide the large-scale application for natural gas over the next 50 years. In order to shed a light on the matter, the Forum has initiated several exploration projects. One of those – on the LNG usage in the transport sector and bunkering – is to be carried out at the newly-launched GECF Gas Research Institute platform.
In his concluding remarks, the GECF Secretary General highly praised fruitful and benevolent cooperative ties between the Forum and Gazprom. It is of meaningful value that alongside with the positive results already recorded, there are emerging yet landmark joint projects to be implemented soon. Namely, the NGV rally, which with no doubt will win a great success once carried out.