The Gazprom Board of Directors took notice of the information about the potential of increasing gas supplies to Europe.

The meeting approved the current policy aimed at maintaining and reinforcing Gazprom's standing in the European market.

The Board appreciated the Company's efforts on consistent adapting to the changes on the European market in Russian gas supply contracts, while keeping their basic provisions intact. The said measures improved the Russian gas competitive ability, thus increasing Gazprom's share in the European market to 27 per cent (from 24 per cent in 2010) in 2011 as well as boosting Russian gas supplies to Europe by 7.9 per cent versus 2010.

The Management Committee was tasked to continue the efforts on boosting gas supplies to Europe.

Background

In 2011 gas consumption in Europe (the EU27 +Turkey + Norway + Switzerland + former Yugoslavia) made up 551.1 billion cubic meters showing a 9.6 per cent drop versus 2010.

Indigenous gas production in Europe was 288.3 billion cubic meters in 2011 (311.4 billion cubic meters in 2010). Likewise, in 2011 gas imports in the region fell significantly down to 262.8 billion cubic meters (298.4 billion cubic meters in 2010). On the contrary, Russian gas supplies to Europe amid this background grew by 7.9 per cent in 2011 and amounted to 150 billion cubic meters versus 139 billion cubic meters in 2010.

According to forecasts by several analytical agencies, by 2030 gas consumption in Europe is expected to grow to 635–670 billion cubic meters. Provided that declining indigenous gas production does not exceed 240 billion cubic meters a year, by 2030 European gas imports is expected to be 400–430 billion cubic metes annually.

As part of the strategy on increasing its share in the European energy market, Gazprom Group plans to take comprehensive measures on creating additional infrastructure and solidifying the Company's standing in sectors characterized by rapid gas demand growth. Such measures include projects on building new gas pipelines to Europe, making physical gas supplies (in the LNG form inclusive) to new European markets, developing small-scale LNG supplies, reinforcing the Company in the related markets, first of all, in the power generation sector as well as developing gas supplies to end users.