European Natural Gas Pipeline Projects1 24.11.2010

EUROPEAN NATURAL GAS PIPELINE PROJECTS

AS GUARANTEE OF ENERGY SECURITY

Economic Commission for EuropeCommittee on Sustainable EnergyEnergy Security and Gas Infrastructure

DEPUTY HEAD OF STRATEGIC DEVELOPMENT DEPARTMENT SERGEY PANKRATOV

European Natural Gas Pipeline Projects2

Sustainable Development of Gazprom is Key Factor for European Energy Security

WELL-DEFINED LONG-TERM STRATEGY CLIENT BASE

GAZPROM’S RESERVESTHE LARGEST GAS SUPPLYSYSTEM IN THE WORLD

STRATEGIC STRATEGIC PROGRAM PROGRAM

FOR GAS BUSINESS FOR GAS BUSINESS DEVELOPMENTDEVELOPMENT

GLOBAL RUSSIA

18% 69%

165,8 20,414,7 47,7

Accumulated production A+B+C1 C2 C3+DTOTAL RUSSIAN RESOURCES - 248.6 tcm

33,1 tcm

LONG-TERM CONTRACTS

Σ ≥ 3 tcm

LONGLONG--TERM TERM CONTRACTSCONTRACTS

ΣΣ ≥≥ 3 tcm3 tcmSUSTAINABLE DEVELOPMENT

ENERGY SECURITY

European Natural Gas Pipeline Projects3

New Energy Strategy of Russia

-2 000

-1 000

0

1 000

2 000

2008 2030Production Import Consumption Export

53.2%46.8%

95.6%

38.7%

61.3%

96.6%

3,4%4,4%

0

200

400

600

800

2008 2030Oil, oil products, coal and other Gas

57%68%

32% 43%

2008 2030

85% 43% 50% 50%

DECREASEDECREASE

19%

14% 22%

45%53%

18% 19%10%

Total Final ConsumptionTotal Final Consumption

GDP Energy IntensityGDP Energy Intensity(1)(1)Primary Energy ResourcesPrimary Energy Resources

20302008

OilOther

GASGAS::INCREASE IN VOLUME, INCREASE IN VOLUME,

SHARE REDUCTIONSHARE REDUCTION

GasGas

OilCoal

OtherCoal

Energy Resources ExportEnergy Resources Export

Source: Energy Strategy of Russia 2030 1. Compared to 2005 levels

Mtoe Mtoe

European Natural Gas Pipeline Projects4

General Plan of RussianGas Industry Development 2030

Key highlights:main parameters of gas industry development key factors of successful gas industry developmentrisk assessments and mitigationrecommendation of state supportive measures

General plan specifies the most effective way for gas industry development

European Natural Gas Pipeline Projects5

Indicators for Russian Gas Industry Development by 2030

Prod

uctio

n gr

owth

664 bcm in 2008

885-940 bcm in 2030

33-42 %

23%3%

0%

50%

100%

2008 2030Share of new pipelines

39%

2%0%

50%

100%

2008 2030Share of new regions

ProductionProduction ExportExportTransportationTransportation

17%27%

0%

50%

100%

2008 2030Share of independent producers

4%26%

0%

50%

100%

2008 2030Share of reconstructed length

15%

0%

50%

100%

2008 2030Share of LNG

20%

0%

50%

100%

2008 2030Share of Asia

Source: Energy Strategy of Russia 2030

European Natural Gas Pipeline Projects6

Yamal Transportation Facilities Development

1

2 9 (double)1854

2487Bovanenkovo – Ukhta (1)

Total length of two lines, kmCompressor station:

unitMW

115-140Total capacity, bcmpa

Bovanenkovo – Ukhta – TorzhokOver 2400Total length, km

Ukhta – Torzhok (2)

Compressor station:1389Length, km

7785

unitMW

European Natural Gas Pipeline Projects7

Gryazovets – Vyborg Gas Pipeline

1420Diameter, mm9,8Working pressure, MPa

55Capacity, bcmpa

Compressor station:

917Length, km

71180

unitMW

European Natural Gas Pipeline Projects8

Murmansk – Volkhov Gas Pipeline

Shtokman projectis not only about LNG

Murmansk – Volkhov startup date and build up will be

determined after Shtokman FID

Compressor station:

1365Length, km28-50Capacity, bcmpa

3250

unitMW

European Natural Gas Pipeline Projects9

Potential of Russian Gas Delivery to Europe

Structure of gas supply to European market*Structure of gas supply to European market*

* – including Baltic States

0

150

300

450

600

750

2010 2030

bcm

Domestic production

270 Import 450-500

2010 2030

European Natural Gas Pipeline Projects10

NORWAY

SWEDEN

DENMARK

GERMANYPOLAND

LITHUANIA

LATVIA

RUSSIA

ESTONIA

FINLAND

Baltic Sea

North Sea

NordStream

Nord Stream

Nord Stream: Offshore Part Nord Stream: Offshore Part

Participants Gazprom (51%), BASF (15,5%), E.ON (15,5%), Gasunie (9%), GDF Suez (9%)

Length 1223 km

Capacity 55 bcm(Phase I – 27,5 bcm + Phase II – 27,5 bcm)

Operational Start

2011 - Phase I 2012 - Phase II

European Natural Gas Pipeline Projects11

ITALY

TURKEY

GREECE

ROMANIA

UKRAINE

HUNGARY

SLOVAKIA

AUSTRIA

CROATIA

SERBIA

BULGARIA

MACEDONIA

MOLDOVA

SouthStream

RUSSIA

SLOVENIA

BOSNIAHERZEGOVINA

MONTENEGRO

South Stream

South Stream

South Stream: Onshore PartSouth Stream: Onshore Part

South Stream: Offshore PartSouth Stream: Offshore Part

Agreements Bulgaria, Hungary, Greece, Serbia, Slovenia, Austria, Croatia

Length ~1300 km to Austria, + 970 km to Italy

Participants Gazprom (50%), ENI (50%)Length 920 km

Capacity 31 bcm with potential increase up to63 bcm based on FEED

European Natural Gas Pipeline Projects12

Gas Industry Developmentin Eastern Siberia and the Far East

Gas-productioncentres

Pipeline gasLNGProjected gas processing plantand gas chemical plantLNG plant

PRINCIPLE SCHEME OF THE UNITED SYSTEM OF GAS PRODUCTION AND TRANSPORTATION

DEVELOPMENT PROGRAM OF GAS INDUSTRY IN EASTERN REGIONS OF RUSSIAAPPROVED BY GOVERNMENT IN SEPTEMBER 2007

European Natural Gas Pipeline Projects13

Altai Project

Compressor station:

Over 2600Length, km1420Diameter, mm

7,4 / 9,8Working pressure, MPa30Capacity, bcmpa

10896

unitMW

European Natural Gas Pipeline Projects14

Russian Gas Pipeline System is the Key for Eurasian Gas Security

European Natural Gas Pipeline Projects15

Thank you for your attention