Gazprom Annual Report 2015 informs about the synchronized development of gas
production and transmission projects.
"Expansion of PJSC
Gazpromís gas transportation capacities is planned in tandem and
close coordination with the development of gas production and
storage facilities, and will also take into account the degree of
readiness to receive gas shown by new consumers, as well as export
projects. ... This approach helps prevent introducing excessive
capacities, make an efficient and flexible use of PJSC Gazpromís
investments, and optimise gas transportation costs," the report
Notably, Gazprom CEO
Alexey Miller believes the company has "colossal" excessive capacity.
constructed production and transmission capacities exceeding the
take-or-pay volumes. The created volumes provide for supplying
annual contracted amounts of gas to our consumers in Europe. A
question arises then: who pays for it? The answer is: Gazprom does,
because we continuously bear the costs of operating these
capacities. Their current volumes are colossal,"
Last year, Gazprom
Southern Corridor gas pipeline that was designed to feed South
Stream. Southern Corridor investment in 2013-2015 is reported at
above $13 Billion.
The Russian business
Vedomosti estimated that Gazprom, under Miller, may have spent
2.4 trillion rubles ($40 billion) on unnecessary expansion.
As Victor Chernomyrdin
used to say, we wanted to do it better, but it turned out as
European Gas Analysis
June 3, 2016
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