Alexey Miller: Esteemed colleagues, dear friends,
According to our tradition, in late December, we take stock of the year past.
In 2023, Gazprom's work was incredibly productive. Among the ongoing tectonic changes in energy markets, we continued confidently along the path of development.
This year, we continued to develop the Yamal gas production center. We built new production capacities at the Bovanenkovskoye field and continued the pre-development of the Kharasaveyskoye field.
But I would like to put a special emphasis on the enormous large-scale work performed by us in the east of Russia. Let us now hear a more detailed information about this from directors general of our subsidiaries and contractors located in eastern Russia.
I give the floor to the Kovyktinskoye field. The first speaker is Andrey Tatarinov, Director General of Gazprom Dobycha Irkutsk.
Andrey Tatarinov: Dear Mr. Miller, esteemed colleagues,
It is a pleasure to be here today at the control board of our new comprehensive gas treatment unit No. 3 (CGTU-3) of the Kovyktinskoye gas and condensate field. For our company, the expiring year 2023 has again become a year of active launch of new production capacities. CGTU-3 is already in operation. Its design capacity is 13.9 billion cubic meters of gas per year, which is twice as much as the capacity of CGTU-2. Gas from CGTU-3 is already being fed into the Power of Siberia gas trunkline.
In parallel, construction is underway for another unit, CGTU-1, which is to be put into operation in 2024. Preparatory works have already started at the site of the fourth unit, CGTU-45.
The Kovyktinskoye gas and condensate field has a design capacity of 27 billion cubic meters of gas per year.
Apart from natural gas, the Kovyktinskoye field produces another very valuable product, gas condensate, which is supplied via the condensate pipeline to the shipment terminal in the Okunaysky town at the Baikal-Amur Mainline. From there, gas condensate is delivered in railroad tank cars to consumers.
It is gratifying to note that not only production infrastructure, but also social amenities were actively built this year. Two new comfortable dormitories and a large canteen for 350 people with a community space were opened in the Nyuchakan shift camp. For the personnel of the condensate shipment terminal in the Okunaysky town, a dormitory with all modern conveniences and a community space were built. All of this allowed us to provide all our shift personnel with comfortable conditions for both work and rest.
Dear Mr. Miller, esteemed colleagues! Let me take this opportunity of wishing everyone a happy New Year and a merry Christmas! May all of you constantly move forward towards achieving, without failure, all of the set goals and targets and implementing all of your professional and personal plans. Dear friends, I wish all of you good health, safe and accident-free work, prosperity in your families, happiness, peace, and everything good and kind!
Alexey Miller: I now give the floor to Nikolay Tkachenko, Director General of Gazstroyprom.
Nikolay Tkachenko: Dear Mr. Miller, esteemed colleagues,
A year ago at this time we launched the first project of higher priority, CGTU-2, at the Kovyktinskoye field. During the construction of CGTU-2, we set many work-related records and our construction workers demonstrated that they are ready for any labor feats for the benefit of Russia. The experience gained in the course of the construction of CGTU-2 was to the full extent applied during the construction of CGTU-3. This work was performed in a steady and efficient manner, and we knew from the very beginning that the unit will be put into operation in 2023. During the construction period, over 2.5 million cubic meters of soil were excavated, 13,000 piles were driven, and 12,000 tons of steel structures and almost 80,000 joints of process pipelines were welded. These figures are truly impressive!
The works proceeded regardless of any circumstances and climatic surprises. In winter, air temperature sometimes fell to minus 40 degrees Celsius, and in summer, during warm months, there were constant showers that resembled torrential rainstorms, and the showers washed out the roads and flooded the trenches.
We strongly appreciate the efforts of the shift workers. On our part, we did what we could to make their work comfortable and provide them with decent living conditions. We arranged dormitories, as well as shops, pharmacies and all required infrastructure. A camp for 6,000 people was created near the construction site.
But first of all, I would like to thank everyone who participated in the construction. And I would like to express my special and deep gratitude to our main contractor, Lengazspetsstroy, who contributed the most to the launch of CGTU-3.
I would like to note that literally every day of the works was described in the construction schedule. We met all the deadlines owing to the efficient work of employers, investors, general designers, and suppliers. However, it was more than just a business relationship, it was a unified team work of fellow thinkers. Because all of us were actually pursuing the same goal. All of us are in the big family of Gazprom. I would like to thank you very much for the trust and support we receive from you during the implementation of the Eastern Gas Program.
There is still a long way to go, but we know for sure that we have already passed the halfway point in the implementation of the Kovyktinskoye projects. And now all of us are equal to any task, no matter how ambitious it may be.
In conclusion, I would like to wish everyone a happy New Year! I wish you happiness, success, accident-free work, and let all the tasks given by the Gazprom management be fulfilled!
Alexey Miller: I now give the floor to Denis Sugaipov, Director General of Gazprom Bureniye.
Denis Sugaipov: Dear Mr. Miller,
All target production indicators are currently achieved by the operating well stock of the Kovyktinskoye field.
In 2023, with the use of 18 drilling rigs and 8 drilling trucks, we have drilled 45 wells for the facilities of CGTU-3 and 26 wells for the facilities of CGTU-1, which will be launched next year. In 2024, we plan to build another 59 wells, inter alia, in the area of CGTU-1 and CGTU-45.
In our current work, we use optimal approaches to ensure the efficiency of operations in the most complicated geological conditions. As pilot tests showed, drilling with the use of air percussion equipment is a non-standard but efficient solution, and it allowed us to perform works up to 15 per cent faster during the construction of the surface casing.
We stay on the course of independence from the services provided by the West. Rotary steerable systems of Russian make which were tested at the Kovyktinskoye field demonstrate high performance and make it possible to increase the drilling advance rate by up to 15 per cent in horizontal boreholes.
To increase the flow rate, we also drill multilateral wells. As of today, we have drilled a total of 20 dual- and triple-lateral wells.
At the Kovyktinskoye field in general, owing to the concerted work of the entire group of companies and the geological steering provided by the Well Construction Center of Gazprom Nedra, the actual flow rates are 20 per cent higher than the design flow rates, and the time required for launch, i.e. the time from the beginning of the well construction to the moment the well starts providing gas, has been reduced from 240 days to 180 days.
The Gazprom Bureniye group of companies keeps up with the times. We use artificial intelligence to control the compliance with the occupational and industrial safety requirements. We work on the implementation of new bit designs to increase the drilling speed. Apart from that, throughout 2023, we have been paying great attention to the enhancement of social amenities for our employees.
Dear Mr. Miller, the group of companies continues to perfect itself in all areas in order to perform the program of most importance for Russia within the scheduled timeframes.
Mr. Miller, on my own behalf, I would like to thank all our employers, supervising departments and operators for their support to our enterprises throughout 2023, provision of the required advance payments and cooperation in all matters, which made it possible for us to develop in a stable manner and fulfill our obligations towards our employees, suppliers and contractors.
Alexey Miller: Dear colleagues, let us now move to the Chayandinskoye field located in Yakutia. And I give the floor to Vladimir Kobychev, Director General of Gazprom Dobycha Noyabrsk.
Vladimir Kobychev: Dear Mr. Miller,
I am happy to send my greetings to you from the Chayandinskoye oil, gas and condensate field. A little over four years ago, we started the first supplies of gas from Chayandinskoye via the Power of Siberia trunkline.
Today, we continue to actively develop the facilities of Chayandinskoye. We have completed the construction of the field's final infrastructure facility, Gas Pre-Treatment Unit No. 4 (GPTU-4), and put it into operation.
GPTU-4 includes a gathering workshop with a slug catcher, block-boxes for methanol supply and distribution, as well as a process building with an operator room and a communication station. The full design capacity of the unit is 6.9 billion cubic meters of gas per year.
State-of-the-art engineering solutions were applied during the pre-development of the facilities. Gas production management at GPTU-4 is carried out with the use of cutting-edge technologies: all processes are automated to the maximum extent possible. To ensure the reliability of the production process, modern controlling and measuring devices and systems are installed for the safety of the equipment operation.
After pre-treatment, the produced gas is fed to Comprehensive Gas Treatment Unit No. 3. These facilities are connected by an inter-field gas pipeline, which is 32 kilometers long.
All natural gas production facilities are demonstrating stable performance and providing the required production levels. Before the end of 2024, the Chayandinskoye field will be brought to its full design capacity.
Gazprom Dobycha Noyabrsk has fulfilled all of its obligations in due time.
Dear friends, I would like to wish you a happy New Year! Let the upcoming year bring you even more success and new achievements.
I wish you accident-free work, reliable fellow thinkers and family warmth.
Alexey Miller: Dear colleagues, now we are moving to the Atamanskaya compressor station of the Power of Siberia gas trunkline. I give the floor to Vladislav Borodin, Director General of Gazprom Transgaz Tomsk.
Vladislav Borodin: Good afternoon, dear Mr. Miller!
I am speaking from the Atamanskaya compressor station of the Power of Siberia gas trunkline. It is the trunkline's place of power. The first-ever pipeline supplies of Russian gas to China began from this place under your guidance. Here, one can feel the strength of character of gas workers, who have created a modern production site in the middle of taiga, built a reliable unparalleled trunkline and advanced complexes that transmit gas from the Kovyktinskoye and Chayandinskoye fields.
Enhancing the industrial beauty of our industry, we are currently working to launch second workshops simultaneously at five compressor stations of Power of Siberia: the Atamanskaya, Erofey Khabarov, Vasiliy Poyarkov, Ivan Moskvitin, and Petr Beketov compressor stations. The employees of all subdivisions of Gazprom Transgaz Tomsk are involved in the launch of the facilities.
As a result of this work, the installed capacity of the gas compressor units will grow by 58 per cent and the throughput of the Power of Siberia pipeline will increase as planned.
Life itself and our operating results confirm your words that Gazprom is always working on its tasks, and does so in sync. It is important that we move forward in sync as one large team.
The greater the challenge is, the more united our ranks are and the brighter we manifest our values, which are faith and will. Will to work, faith in our strength and team reliability, faith in our victory!
In China, the pine is a symbol of standing the test of time. Confucius said: “Only after winter comes do we know that the pine is the last to fade.” Just the same, every year, winter tests gas workers for their strength. And every year, we confirm our readiness to pass the tests and prove our reliability with our deeds.
Dear Mr. Miller, dear Members of the Management Committee, dear colleagues! Next year has been declared the Year of the Family. Our families and loved ones are the most fragile and precious treasure that we have and that is given to us from above. The team of gas workers is also a large family. We have a shared history and a common goal that unites our team and helps us tackle any tasks.
I would like to wish all of you a happy New Year and a merry Christmas! I wish our tight-knit family to enjoy simple human happiness, professional happiness and the joy of new discoveries and new victories.
Alexey Miller: Now let us move to the town of Svobodny, to the construction site of the Amur Gas Processing Plant. And I give the floor to Yury Lebedev, Director General of Gazprom Pererabotka Blagoveshchensk.
Yury Lebedev: Dear Mr. Miller,
The outgoing year 2023 was marked by especially high results for our enterprise. We have reached a very important milestone: a half of the production capacities of the Amur Gas Processing Plant, i. e. three out of six production trains, are now in commercial operation. The obtained methane fraction fully complies with the specified parameters. With putting these capacities into operation, Gazprom has doubled the quantity of gas being processed. We have already commenced pre-start-up activities at the fourth production train, the construction of which was finished two days ago.
In the current year, two out of three helium units have been launched and brought to their full design capacity.
Helium produced at the Amur GPP has a special degree of cleanliness, up to four nines after the decimal point. This rare and valuable gas becomes liquid in our cryogenic facilities. The process takes place at the temperature of minus 269 degrees Celsius. This year, Gazprom has increased helium production capacities eightfold, and 100 thermally-insulated containers – which equals more than 400 tons of this cryogenic product – were shipped in the period from September to December 2023.
Throughout the past year, the Amur GPP for the first time ever produced the entire range of the plant's commercial products. The produced products have the highest quality across the sector and all of them are extracted from feedstock obtained at Eastern Siberia's fields.
The result achieved in 2023 is especially important, because all 13 process facilities of the plant were put into operation by the specialists of Gazprom Pererabotka Blagoveshchensk on their own, without the participation of foreign licensors and developers. Along with the performance of the construction works, modern safety systems for cryogenic production were introduced and the most reliable early gas detection and safety control systems were used at the plant.
The work that was performed in these complicated conditions allowed our specialists to gain unique experience, and the achieved results demonstrated the whole world that the project will be successfully implemented.
This year, 1,000 people have joined our team – specialists are coming from all over the country to work at the most advanced production enterprise. Here, they will find not only secure and interesting jobs, but also comfortable housing. In 2023, as many as 33 of the planned 42 houses have already been built and occupied by residents in the Alexeevsky microdistrict created for the plant's employees. Right now, new occupants are moving into the ready-made apartments in another two new residential buildings.
We are continuing our work so that production and social facilities can be successfully put into operation in the next 2024 year. On behalf of all employees of the plant, I sincerely wish all colleagues working in the Gazprom Group a happy New Year.
Alexey Miller: Esteemed colleagues, directors general who are implementing the Eastern Gas Program! Thank you so much! You did really great!
As we can see, the large-scale production complex of Gazprom in eastern Russia is confidently developing for the benefit of our country and the domestic gas sector.
As for other businesses, I would like to note that this year Gazprom completed the implementation of a whole range of oil processing and power generation projects.
Gazprom Neft has launched Russia's most advanced primary oil refining complex at the Omsk Refinery. In addition, we have launched the production of domestic base synthetic oils at the Omsk Lubricant Plant.
As for power generation, a large-scale renovation of two power plants, the Avtovskaya CHPP in St. Petersburg and the Verkhne-Tulomskaya HPP in the Murmansk Region, was performed by Gazprom Energoholding. The Verkhne-Tulomskaya HPP is the largest HPP in the northwestern part of Russia.
All new equipment, as well as automation and control systems at these power plants are of Russian make. In these two areas of our work, we have also made a significant step towards our technological sovereignty. For many years, Gazprom has been working in this direction and solving complicated technological tasks. This systematic and thorough work is being performed in close conjunction with Russian enterprises on the basis of the agreements signed with the regions and relevant ministries of the Russian Federation.
We are successfully implementing unique projects, even against the background of sanctions pressure and the withdrawal of foreign partners. Yury Lebedev told us perfectly well and in detail about that in his speech today. The western licensor left the Amur Gas Processing Plant. However, we have already performed the start-up operations by ourselves and continue building the plant unassisted, relying on our own forces and resources. We are doing it successfully and within the scheduled timeframes. And there is no doubt that the design capacity of the Amur Gas Processing Plant will be brought to 100 per cent on schedule.
That is why, in this regard, I would like to highlight that we have almost achieved the technological sovereignty in the gas sector. We have just a little more to do. We are very nearly there.
Esteemed colleagues,
Undoubtedly, the number one objective for Gazprom is to provide reliable gas supplies to our consumers and, of course, to ensure reliable gas supplies in the autumn/winter period. To that end, we are efficiently expanding our resource base. Please note that in 2023, for the 19th consecutive year, Gazprom has been ensuring that its reserve replacement ratio exceeds 1. It is the longest period in this regard that has ever been registered in the entire history of the gas industry. It is a new record set by Gazprom. And for our consumers it means, of course, confidence in the long-term stability and reliability of gas supplies.
We provide reliable supplies to the domestic market. And Gazprom's supplies from its gas transmission system for 2023 will exceed the level of the preceding year.
And of course, as usual, we have made thorough preparations for the autumn/winter period and provided maximum levels of gas reserves in our underground gas storage facilities. I would like to highlight that Gazprom has, again, traditionally set a new all-time high for the working gas inventories accumulated in our UGS facilities by the start of the withdrawal period, namely, 72.8 billion cubic meters. The Company also reached an all-time high in terms of the maximum daily deliverability of the UGS facilities achieved by the start of the withdrawal period: 858.8 million cubic meters of gas.
And we have already gone through the first winter peak in December. The first half of December in the area covered by the Unified Gas Supply System turned out to be cold. And one week was abnormally cold. On December 8, the average temperature within the Unified Gas Supply System of Russia dropped to minus 17 degrees Celsius. This is one of our traditional winter peaks. And we worked quite steadily during this period. On December 8 and 13, we set an all-time high in terms of gas supplies from the Unified Gas Supply System to our consumers, namely, we supplied 1.717 billion cubic meters of gas.
Our consumers did not notice these frosts at all. And this indicates that our work is reliable and stable.
Gazprom, as a responsible company, has been working in a constructive manner and cooperating with our neighbors, the countries with whom we traditionally maintain close professional contacts and perform joint work. And we have an increasing number of such partners.
In this regard, I would like to highlight the growth of gas supplies to the Republic of Uzbekistan. In the beginning of this December, frosts also came there. And we doubled our gas supplies to Uzbekistan as compared to our daily contractual obligations. At present, this December, we are supplying Uzbekistan with the maximum technically possible volume of gas that can be transmitted via the Central Asia – Center gas trunkline.
This year we set another record. In just over three months, the idle Central Asia – Center gas transmission system was switched to work in reverse mode. Thanks to such united and collaborative efforts in a friendly environment, we, together with our colleagues from Kazakhstan and Uzbekistan, delivered this project in the shortest time possible. Therefore, the republics in Central Asia entered this winter with more reliable gas supplies.
We also started implementing the second stage of ramping up the gas transmission capacities within the Central Asia – Center corridor in a very short time. The deadlines for the completion of the task are extremely tight again: by November 1, 2025, we are to begin deliveries of much larger volumes. The medium-term fifteen-year contracts that we agreed on with our partners in Kyrgyzstan, Kazakhstan, and Uzbekistan will be concluded in the middle of the next year at the St. Petersburg International Economic Forum. On November 1, 2025, reliable and stable supplies to the Central Asian republics will start under these contracts.
Indeed, Gazprom is gaining more and more consumers. And this is due not only to the increase in the number of our partners in neighboring countries, in countries friendly to us, but, first of all, to the implementation of the programs for gas supply and gas infrastructure expansion in the constituent entities of the Russian Federation and the program for additional social gas grid expansion. We are implementing these programs pursuant to the instructions issued by Vladimir Putin, President of the Russian Federation.
We are implementing these programs in a confident manner. I can say that as part of the additional gas grid expansion program we performed 50 per cent more work in 2023 than in 2022. At the end of this year, more than one million – more precisely, about 1.150 million contracts – will have been signed, and the technical possibility has already been ensured for laying gas pipes up to the land plot boundaries under all these contracts. Of these 1.150 million contracts, gas grids have already been laid to the relevant land plots and households under 875,000 contracts. Under 500,000 contracts, gas is already being fed to the households.
We have decided to increase the amount of funding for the gas supply and gas infrastructure expansion program in the Russian Federation and the additional social gas grid expansion program to RUB 270.3 billion, which is RUB 33.5 billion above the level of the preceding year. This is the maximum amount of funding ever allocated for this area of our work, which is among the most important ones.
As of January 1, 2024, the gas grid coverage across Russia will be at 89 per cent out of 100 per cent of the technically possible gas grid expansion nationwide. Since we are implementing this program steadily and consistently, we have absolutely no doubt that the goal set by the President of Russia – to achieve a 100 per cent gas grid expansion by 2030 – will be accomplished by us.
And of course, we want children, the younger generation, to grow up robust, healthy, strong, and resilient. We have been pursuing the Gazprom for Children project for many, many years. We are doing this very quickly and efficiently, too. Virtually every three days, at least one facility of the Gazprom for Children project comes into existence in Russia. As of today, we have built and commissioned 116 facilities under the Gazprom for Children project in 2023. Dear colleagues, this is a very decent figure. Gazprom is a socially responsible company, and we will continue this work.
Esteemed colleagues, now let us touch upon foreign markets. The situation in Europe is well known to us. A record was set there as well. For the first time ever in the history of the global energy industry, demand for gas is being artificially destructed there. And gas is a primary energy source. This is a deliberate destruction of demand for one of the most environmentally friendly energy products. This has never happened before. In many European countries, this has actually already led to their deindustrialization.
Regarding the use of gas worldwide, the shared expert opinion is that the growth in gas demand will continue, and within 25 years it will increase by 43 per cent globally. The most important thing is that we are ready for this.
We are developing cooperation with the countries that are interested in reliable energy supplies, and we have been working in the eastern direction for a long time. First of all, with China.
China is our strategic partner. And I would like to note that on December 23 we set an all-time high for Gazprom's daily gas exports to China.
This year's gas supplies to China are going to be 1.5 times higher than in 2022. At the same time, I would like to draw your attention to the fact that the volume of additional gas supplies provided since the launch of the Power of Siberia gas trunkline has been at the maximum compared to all previous years.
The volume of gas supplies to China in 2023 will be above 22.5 billion cubic meters, while our contractual obligations provide for 22 billion cubic meters.
Esteemed colleagues, there is no doubt that in 2025 we will reach the amounts of gas supplies to China provided for by our contractual obligations, i.e. 38 billion cubic meters of gas. I am confident that we will continue to regularly update daily records for gas supplies to said country.
Apart from this, we, of course, are performing proactive activities in this direction. For instance, we have already started the works under the construction project for the Far Eastern gas supply route to China, which will stretch from the Russian Far East, and gas supplies via this route will begin no later than in 2027.
We also continue to arrange Russian gas supplies to China across Mongolia.
Esteemed colleagues,
We are successfully increasing the production potential of the gas industry. We actively cooperate with Russian regions. We foster the development of the scientific and industrial potential of Gazprom and our technology partners.
Our work helps Russia develop confidently. Opportunities emerge for people to have more comfortable living conditions, while the industrial sector is provided with conditions for its progressive development and for the creation of new, modern and sovereign technological production capacities. We can be rightfully proud of the results of our work performed in 2023.
I would like to thank all of you for dedicated work and commitment to our common cause. Thank you for your professionalism. With a team like ours, we can handle any challenges.
Dear friends, esteemed colleagues,
I would like to congratulate you and your families on our favorite holidays! Happy New Year and Merry Christmas! Let your homes be warm and cozy! I wish you all the best and joyous in your life. I wish you prosperity, happiness and, of course, good health. I am absolutely sure that we will fulfill all the tasks. All of us know for sure that we will.
