Gazprom pipelines and export capacity

Газопроводы Газпрома и экспортные мощности

Gas pipelines of West Siberia

Газопроводы Западной Сибири

Export flows of Gazprom

Экспортные потоки

Spot, Gazprom, Brent

Цены на нефть и газ

End-use price of gas

Russia and USA

Daily gas production

Суточная добыча


Important Changes in Russian Gas Business Environment


Operating Costs of Gazprom (February 22, 2005)

  • In financial reports of Gazprom, costs of gas operations are hidden among the total costs.

  • We believe the reported cost of fuel gas (gas burned at compressor stations) is a good indicator of the gas operating costs' performance.

    • Fuel gas is accounted at its delivery cost.

    • Cost of fuel gas is not affected by most significant taxes, such as excise tax, export tax and VAT.

Source: East European Gas Analysis (based on financial reports of Gazprom)

Source: East European Gas Analysis (based on financial reports of Gazprom)

 

 

  • The left chart above shows calculated cost of fuel gas as reported by Gazprom.

    • The estimation for 2004 is based on the Q3-2004 financial report of Gazprom.

  • Cost of gas operations of Gazprom grows much faster than the Russian average wage and industrial price index.

    • In 1999-2004, cost of fuel gas has risen ten-fold, compared with about five-fold increase of the average Russian wage and three-fold of the industrial price index.

    • Cost of fuel gas was growing fast after the period of hyper-inflation caused by the Russian crisis of 1998.

    • In 2004, cost of fuel gas is 2.5 times higher than in 2001, compared with 2.1 times for the average Russian wage and 1.6 for the industrial price index.

      • About $3.00 out of an estimated $5.35/mcm increase of fuel gas cost between 2003 and 2004 is attributed to the surge of mineral production tax.

    • Based on the Q3-2004 financial report of Gazprom, we reduced our estimations for the fuel gas cost in 2004.

 

Source: East European Gas Analysis


Last modified: 12/07/14                    East European Gas Analysis 2006-2014                                           Email: info@eegas.com
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