Initial Operations to Include Gas Swaps and LNG Marketing
Gazprom Marketing & Trading USA, Inc. announced today that it has begun trading and marketing of natural gas in North America, marking the first entry by a Gazprom Group company in the United States.
“The development of new markets and products is key to Gazprom Group’s global energy strategy. We have now achieved our goal of bringing the world’s largest gas company into the world’s largest gas market,” said Vitaly Vasiliev, Chief Executive Officer of Gazprom Marketing and Trading Limited in the United Kingdom. “Our U.S. affiliate is now off and running, and we look forward to significant growth and profitability from our expanding geographical base.”
Gazprom Marketing & Trading USA has acquired physical gas supplies from counterparties at designated pipeline hubs across North America by executing a number of innovative, long-term gas swap transactions that have allowed it to quickly gain a substantial physical gas supply position in North America.
“These gas swaps have given us a strong supply foundation to build our marketing and trading operations,” said John Hattenberger, President of Gazprom Marketing & Trading USA. “We have already signed deals giving us more than 350 million cubic feet per day of physical supplies at several different locations all across the U.S., for the next three to seven years. Our goal now is to grow from that position rapidly and expand into all major North American markets.”
Gazprom Marketing & Trading USA will also market liquefied natural gas (LNG) exported to North America by its Gazprom Group affiliates. In May 2009, the company signed long-term agreements enabling it to buy LNG from the Sakhalin-2 LNG plant, off Russia’s Pacific coast, which started production in 1Q 2009, regasify the LNG in a facility in Baja California, Mexico, transport it by pipeline to southern California, and sell natural gas into southwestern U.S. markets. The company also plans to import LNG into the USA from the giant Shtokman LNG projects in the Arctic.
About Gazprom:
Gazprom is a global energy company engaged in
the exploration, production, transmission, storage, processing and
marketing of natural gas and other hydrocarbons both in Russia and
around the world. Gazprom is the world’s biggest natural gas producer,
with reserves estimated at 1,170 trillion cubic feet (33.1 trillion
cubic meters), about 17 per cent of the world’s total gas reserves. It
owns the world’s largest transmission system and exports natural gas to
more than 31 countries. Gazprom is Russia’s largest company and accounts
for 83 per cent of the country’s gas production and about 70 per cent of
its reserves. Gazprom’s total investment programme for 2009, which
consists of capital expenditure and long-term investments, is US$25.3
billion. Gazprom Marketing & Trading Limited is a UK-registered
wholly-owned subsidiary of Gazprom based in London that was established
in 1999 to manage Gazprom’s marketing and trading activities in
liberalizing markets in Western Europe. In September 2005, Gazprom
Marketing & Trading Limited sold its first cargo of LNG for resale in
the US market. Gazprom Marketing & Trading USA, Inc. was formed in July,
2006 to serve as the platform for entry into the North American market.
Contacts:
Ketchum, on behalf of Gazprom Marketing & Trading USA:
Paul
Cohen, +1-646-935-3934
paul.cohen@ketchum.com
