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


Gazprom Reports Soaring Costs


Gazprom has published its financial report for H1-2009. The results show that the Russian gas monopoly is unable to control gas production and transmission costs. Compared to the average costs of 2008, the reported gas production cost of Q2-2009 was up 33% and transmission cost per 1000 cubic meters of marketed gas soared 36%. Note that the growth from Q1 to Q2-2009 can not be explained by the drop in production and sales.

Table 1. Gas Production and Transmission Costs of Gazprom

 

2006

2007

2008

Q1-2009

Q2-2009

Gas production cost, Rub per 1000 cub m

372

421

474

521

631

Transmission cost, Rub per 1000 cub m of marketed gas

567

680

846

959

1151

Table 2. Growth of Gas Production and Transmission Costs of Gazprom

 

2006/2005

2007/2006

2008/2007

Q2-2009/ Ave 2008

2009 Q2/Q1

Gas production cost

11%

13%

13%

33%

21%

Gas transmission cost

10%

20%

25%

36%

20%

This year, Gazprom introduced a new reportable business segment - Gas Storage. The storage costs and benefits are reported a peculiar way. Storage operations are unprofitable during the gas withdrawal period in Q1 (when underground storage facilities sell gas to the pipeline system) and become profitable with the start of injection period in Q2 (when the facilities buy gas).

Mikhail Korchemkin

November 13, 2009

Malvern, Pennsylvania, USA


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