1. Gazprom
Sector: Oil and Gas
Investments in 2023: RUB 2,519.1 billion
Investments in 2022: RUB 2,294.5 billion
Gazprom's main assets
1. Gas fields
Gazprom has the world's largest natural gas reserves, accounting for over 70% of Russian and about 16% of global gas production. Key fields:
Bovanenkovo field: One of the largest on the Yamal Peninsula, with confirmed gas reserves of over 4.9 trillion cubic meters. This field is the basis for long-term provision of domestic and export demand.
Kruzenshternskoye field: It is being developed as part of the Yamal gas production cluster. The introduction of modern technologies allows for the efficient development of complex fields in Arctic conditions.
Chayandinskoye field: It is the resource base for the Power of Siberia pipeline. Modern technologies allow for stable gas supplies to China.
2. Gas pipelines and export infrastructure
Gazprom owns one of the world's longest gas transportation systems, which connects the main fields with domestic and export markets.
Power of Siberia: The pipeline, more than 2,200 km long, supplies gas to China and becomes the basis for expanding cooperation with Asian countries.
Nord Stream 1 and Nord Stream 2: Gas pipelines connecting Russia and Europe via the Baltic Sea provide significant volumes of supplies to key European markets.
Turkish Stream: Gas pipeline that supplies gas to Turkey and southern European countries.
3. Liquefied natural gas (LNG) plants
Gazprom is actively developing LNG production to expand exports to markets not accessible through pipeline infrastructure.
Baltic LNG project: A plant on the Baltic Sea coast, the construction of which will significantly increase the volume of liquefied gas exports.
Sakhalin LNG: One of the company's largest projects, providing gas supplies to the markets of Japan, South Korea and other Asia-Pacific countries.
4. Gas processing plants
Gazprom owns a number of processing plants that produce gas chemical products used both on the domestic market and for export.
Orenburg Gas Processing Plant: One of the largest in Russia, the modernization of which allows for an increase in gas processing and the production of petrochemical products.
Urengoy Condensate Processing Plant: A leading manufacturer of liquefied petroleum gases and other processed products.
5. Energy infrastructure
Gazprom actively invests in energy assets for the production of heat and electricity.
Gas turbine power plants: Installed in various regions of Russia, they provide energy to industrial and domestic consumers.
Thermal power complexes: Provide heating and hot water for millions of residents of Russia, especially in the northern regions.
6. Research and development centers and technology base
Gazprom develops innovative technologies to improve the efficiency of gas production and processing.
LNG technology development centers: Provide development of new solutions for gas liquefaction and transportation.
Monitoring and automation systems: Use of artificial intelligence and big data to manage gas pipelines and monitor the condition of facilities.
Gazprom's main investment areas
1. Development of gas production capacities
Gazprom actively invests in the development of fields and the increase in gas production, which meets both Russia's domestic needs and export supplies.
Fields of the Yamalo-Nenets Autonomous Okrug:
Yamal is a strategically important region for gas production, where the largest reserves of natural gas are concentrated.
Bovanenkovo field: One of the key fields on the Yamal Peninsula, with projected reserves of more than 4.9 trillion cubic meters of gas. In 2023, Gazprom continued to expand its gas production and transportation infrastructure, including the construction of additional gas pipelines.
Kruzenshternskoye field: The second largest field in Yamal by reserves, where advanced technologies are used for development in the harsh Arctic climate.
Chayandinskoye and Kovyktinskoye fields (Eastern Siberia):
These fields provide the resource base for the Power of Siberia pipeline.
Automated control systems have been introduced at the Chayandinskoye field, which make it possible to increase production efficiency and reduce costs.
In 2023, work was completed at the Kovyktinskoye field to launch new wells and build gas transportation infrastructure.
2. Transportation and export projects
Gazprom continues to expand and modernize its gas transportation system, ensuring stable gas supplies to export markets.
Power of Siberia:
This gas pipeline, over 2,200 km long, connects fields in Eastern Siberia with the markets of China. In 2023, the company invested in:
Increasing the capacity of the gas pipeline to meet growing demand in China.
Modernization of compressor stations to improve energy efficiency and reliability of supplies.
Nord Stream 2 and Turkish Stream:
Despite geopolitical challenges, Gazprom continues to support and develop the infrastructure of these pipelines.
As part of Nord Stream 2, technical work is being carried out to maintain the operability of the system.
Turkish Stream supplies gas to Turkey and Southern European countries, while Gazprom is investing in increasing capacity and expanding connections to regional gas transportation networks.
Baltic Pipeline System 2 (BPS-2):
This project is aimed at transporting oil and oil products to northwestern export markets via the Baltic Sea. Investments are focused on upgrading pumping stations and building oil storage tanks.
3. LNG processing and production
Gazprom is actively developing the production of liquefied natural gas (LNG) to expand export opportunities in markets not accessible via pipelines.
Baltic LNG Project:
A new plant being built on the Baltic Sea coast will increase LNG production. The plant is focused on gas supplies to Europe and Asia, which will strengthen the company's position on the international market.
Orenburg Gas Processing Plant:
The expansion of the plant will increase gas processing and the production of petrochemical products, such as liquefied petroleum gases and sulfur.
New technologies have been introduced that improve the environmental safety of processing processes.
4. Energy and distribution infrastructure in Russia
Gazprom is actively working on upgrading its internal networks, ensuring gasification of regions and developing energy infrastructure.
Reconstruction of gas distribution networks:
Gazprom is expanding distribution networks in remote regions, including the Far East, North Caucasus and Siberia.
Gasification programs are aimed at connecting new homes and businesses, improving population access to gas.
Electric power and heating:
Investments in gas turbine power plants ensure reliable power supply to industrial enterprises and residential buildings.
Improvement of centralized heating infrastructure reduces coal consumption and increases energy efficiency.
5. Technological and innovative developments
Gazprom relies on advanced technologies that increase the efficiency and environmental safety of its operations.
Digitalization and automation:
The introduction of digital control systems for gas pipelines and production facilities reduces costs and increases the reliability of the infrastructure.
Using artificial intelligence and big data improves forecasting and risk management.
Green technologies and emissions reduction:
Carbon capture and storage (CCS) projects reduce greenhouse gas emissions.
Gazprom invests in hydrogen production as a promising clean fuel.
The impact of Gazprom's investments on Russia
Gazprom's investments play a key role in strengthening Russia's economic and energy stability, as well as improving the quality of life of the population. These projects cover a wide range of areas, including ensuring energy independence, creating jobs, developing infrastructure and improving living standards.
Strengthening energy independence and export potential
Gazprom remains a strategic leader in gas production and export, ensuring the country's energy independence. The development of fields in Yamal and Eastern Siberia allows us to stably meet domestic demand and maintain export supplies.
The Power of Siberia pipeline strengthens Russia’s position in the Chinese market, while TurkStream and other infrastructure projects continue to serve European consumers.
Liquefied natural gas (LNG) production expands Gazprom’s presence in global markets, including Asia, Europe and the Middle East.
Job creation
Gazprom’s activities directly and indirectly provide jobs for hundreds of thousands of people:
Direct employment includes employees engaged in production, transportation, processing and maintenance of facilities.
Indirect impact includes job creation in construction, logistics and other related industries.
Gazprom also actively supports the training and professional development of its employees, cooperates with educational institutions and promotes the development of human capital.
Infrastructure development and regional integration
Gasification remains one of the company's priorities. Gazprom is implementing large-scale programs to connect remote regions, such as the North Caucasus, the Far East and Siberia, to gas distribution networks.
Infrastructure modernization, including the reconstruction of gas pipelines and compressor stations, ensures reliable and sustainable energy supplies.
Development of transport routes and logistics associated with gas production projects contributes to the growth of economic activity in the regions.
Improving the standard of living of the population
Gazprom's investments contribute to improving the quality of life:
Gasification reduces the population's costs for heating and electricity, increasing the availability of energy.
Implementation of social projects, such as the construction of schools, hospitals and sports facilities, improves the infrastructure in the regions where the company operates.
Environmental initiatives, including emission reduction and reclamation projects, improve the environmental situation, making life more comfortable.
Gazprom's investments support the country's economy, develop regions and integrate them into a single economic space, creating favorable conditions for Russia's long-term development.
Impact on investors
Gazprom is a public company whose shares and derivative financial instruments are traded on Russian and international stock exchanges. A stable dividend policy, export revenues and large-scale investments make the company attractive to investors and traders.
Public status of the company
Gazprom is a public company whose shares are traded on the Moscow Exchange under the ticker GAZP. In addition, the company's global depositary receipts (GDRs) were previously traded on the London Stock Exchange, but in the current environment, access to international markets is limited.
Futures and options on Gazprom shares:
The Moscow Exchange offers derivative instruments such as futures and options on Gazprom shares. These instruments allow traders to profit from price fluctuations in shares without purchasing them directly.
Dividend Policy
Gazprom maintains a long-term dividend policy focused on regular payments to shareholders.
Payout size: In recent years, the company has paid out a significant share of its profits in the form of dividends. For example, in 2022, Gazprom paid out record dividends due to high revenues from gas exports.
Dividend policy goals: Gazprom aims to provide payments in the amount of 50% of its net profit under International Financial Reporting Standards (IFRS). However, the size of payments may vary depending on the financial results and strategic needs of the company.
Key points for investors and traders
Investors and traders can view Gazprom as a stable asset with growth potential.
For long-term investors:
Reliable dividend payments make Gazprom shares attractive for receiving stable income.
Large-scale gasification, LNG and gas export projects provide long-term growth prospects.
The company is actively expanding its export capabilities, which may lead to an increase in revenue and a stronger position in international markets.
For short-term traders:
High liquidity of shares and derivatives allows traders to effectively exploit price fluctuations.
Gazprom share futures provide the opportunity for speculative trading using leverage, which increases potential profitability.
Gas price fluctuations on global markets and geopolitical events create opportunities for short-term trading strategies.
Gazprom futures and derivatives
Gazprom share futures are available on the Moscow Exchange, which provide additional opportunities for traders:
Speculation: Futures allow you to earn on changes in the value of shares without having to own the underlying asset.
Hedging: Investors can use futures to protect their portfolios from the risk of price fluctuations.
Leverage: The ability to trade using leverage increases potential profitability, but also increases risks.
Gazprom, being a public company with shares on the Moscow Exchange (ticker GAZP), attracts both long-term investors and short-term traders. A stable dividend policy, availability of derivatives and broad growth prospects make the company an important participant in the Russian and international financial markets. However, investors and traders should consider geopolitical risks, gas price volatility and the impact of environmental obligations when forming their strategies.
