International Projects

Projects aimed at developing the transnational Eurasian gas transmission system:

  • Yamal – Europe gas pipeline
  • Blue Stream gas pipeline
  • Nord Stream gas pipeline
  • TurkStream gas pipeline

Hydrocarbon exploration and production worldwide

    What gas transmission projects does Gazprom develop in Europe?

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    Yamal – Europe gas pipeline

    The transnational Yamal – Europe gas pipeline runs across four countries: Russia, Belarus, Poland and Germany. The current overall length of the gas pipeline exceeds 2,000 km. There are 14 compressor stations operational, of which three are in Russia, five – in Belarus, five – in Poland and one – in Germany.

    The gas pipeline construction began in 1994. First sections of the pipeline were brought onstream as early as in 1996.

    The German end of the project was overseen by Wingas, a joint venture between Gazprom and Wintershall. Russian gas arrives at the Mallnow compressor station in the vicinity of the German-Polish border.

    The Polish section of the gas pipeline was built by EuRoPol GAZ, a joint venture owned by Gazprom and Polish PGNiG.

    Gazprom is the sole investor and owner of the Belarusian gas pipeline section.

    Upon commissioning of the last compressor station in 2006, Yamal – Europe reached the full capacity of 33 billion m3 per annum.

    Yamal — Europe gas pipeline
    Yamal — Europe gas pipeline
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    Blue Stream gas pipeline

    The purpose of the Blue Stream gas main is to directly supply Russian gas to Turkey and bypass transit countries. The 1,213 km long gas pipeline consists of an overland and a submerged section.

    The submerged section of Blue Steam is unique in design and construction.

    The submerged pipeline rests on the bottom of the Black Sea at depths of up to 2,150 m, i.e. one-third deeper than every known underwater pipeline in the world. Construction was impeded by the unfavorable landscape of the bottom and by the aggressive ground environment saturated with hydrogen sulfide. The submerged section of the pipeline is 393 km long. The gas pipeline was completed in December 2002. In February 2003 commercial gas started flowing through the pipeline. The design capacity of Blue Stream equals 16 billion m3 of gas per annum.

    In 2014 Blue Stream conveyed 14.4 billion m3 of gas. In May 2015 the total volume of gas supplied via Blue Stream exceeded 117 billion m3.

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    Nord Stream gas pipeline

    The Nord Stream gas pipeline with the annual capacity of 55 billion m3 of gas runs across the Baltic Sea from Russia to Western European countries. Nord Stream will constitute a fundamentally new export route for Russian gas. With no transit countries on its way, the gas main is distinguished by zero country risk and low transit costs, while assuring more reliable supplies. The project is also crucial for diversifying export routes and directly link the gas transmission pipelines of Russia with the European gas network.

    The gas pipeline construction began in December 2005 twhen the first joint of the Gryazovets – Vyborg overland section in Russia was welded. Construction of the Nord Stream gas pipeline in the Baltic Sea started in April 2010. The Unified Gas Supply System elements required for gas supplies via Nord Stream were constructed by Gazprom itself.

    Gazprom (51%) partners BASF/Wintershall and E.ON AG (15.5% each), Gasunie and ENGIE (9% each) within the project.

    Representing the pan-European significance, the Nord Stream project has been included into the list of the top-priority energy projects of the Trans-European Energy Network. The main target markets for gas supplies via Nord Stream are Germany, Denmark, the Netherlands, the UK and France.

    The major gas customers of the first gas pipeline string are Wingas, Gazprom Marketing & Trading, E.ON Ruhrgas, ENGIE and DONG Energy.

    In November 2011 the gas pipeline’s first string with the throughput capacity of some 27.5 billion m3 per annum was commissioned and commercial gas supplies to European consumers started. In October 2012 the Nord Stream’s second string was commissioned, which made it possible to increase the gas pipeline capacity to 55 billion m3.

    Nord Stream gas pipeline
    Nord Stream gas pipeline
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    TurkStream gas pipeline

    On December 1, 2014 Gazprom and Turkish Botas signed the Memorandum of Understanding on constructing a gas pipeline with the capacity of 63 billion m3 a year across the Black Sea from Russia to Turkey.

    TurkStream gas pipeline
    TurkStream gas pipeline
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    Why does Gazprom purchase gas in Central Asia? Will Gazprom produce gas in Central Asia? How is Central Asian gas transported?

    As the groundwork for sustainable gas supply at the required level, Gazprom is looking to tap into new fields in various regions, for example, the Yamal Peninsula and the Arctic shelf. All these areas have exceptionally challenging climatic and geological conditions. Gas will cost much more to extract there compared to other regions.

    Therefore, Gazprom is seeking to add natural gas of Central Asian origin to its export portfolio in order to enhance the effectiveness of trading operations.

    Cooperation between Gazprom and Central Asian gas producers began in 2001 and now covers gas purchases and transit across Central Asian countries, exploration and production, gas processing at Russian facilities as well as creation and acquisition of fuel and energy infrastructure facilities in Central Asia.

    In 2014 Gazprom Group acquired 29.52 billion m3 of Central Asian gas, including 10.98 billion m3 in Turkmenistan, 7.38 billion m3 in Uzbekistan, and 10.95 billion m3 in Kazakhstan. From 2011 purchases of Azerbaijani gas were initiated. In 2014 their amount totaled 0.21 billion m3.

    Layout of Central Asia – Center gas pipeline
    Layout of Central Asia – Center gas pipeline
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    What international hydrocarbons extraction projects is Gazprom involved in?

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    Developing and utilizing hydrocarbon resources in Central Asia

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    In 2002 Gazprom and NHC Uzbekneftegaz entered into the Agreement on Strategic Cooperation stipulating Gazprom participation in natural gas production projects in Uzbekistan under the production sharing agreement (PSA) terms.

    Since mid-2004 Gazprom has been involved in restoring gas production in the Shakhpakhty field under the PSA terms. As of late 2014, the accumulated gas production since the start of the follow-up development exceeded 2.8 billion m3. In 2006 Gazprom and NHC Uzbekneftegaz signed the Agreement on Basic Principles for Geological Exploration of Ustyurt Investment Blocks in the Republic. Gazprom International (at that time Gazprom Zarubezhneftegaz) was appointed the project operator. In the course of geological operations the Dzhel gas and condensate field was discovered in the Shakhpakhty block in 2009.

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    In 2002 Gazprom and AO NK KazMunaiGaz set up on a par and registered in Kazakhstan the TOO KazRosGas joint venture engaged in natural gas purchasing, marketing and processing at the OOO Gazprom Dobycha Orenburg facilities.

    In 2008 OOO TsentrCaspneftegaz (a joint venture of OAO Gazprom and OAO LUKOIL) discovered a field named Tsentralnoye within the Tsentralnaya geological structure in the Caspian Sea. The field’s aggregate recoverable resources amount to 101.4 million t of oil, 7.5 million t of condensate and 162.1 billion m3 of free and dissolved gas.

    Following the agreement between Russia and Kazakhstan, the field will be developed by the Tsentralnaya Oil and Gas Company, a Russian-Kazakh joint venture set up on a par in 2013. The Russian party is represented by Gazprom and LUKOIL, the Kazakh party – by KazMunaiGaz.

    Work is underway for obtaining subsurface use licences for the field by both the Russian and Kazakh parties.

    In 2010 Russia and Kazakhstan entered into the Intergovernmental Agreement on joint geological survey and exploration of the cross-border Imashevskoye gas and condensate field. Pursuant to the Agreement, Gazprom was identified as the authorized company on behalf of Russia and AO NK KazMunaiGaz – on behalf of Kazakhstan.

    In 2011 Gazprom and AO NK KazMunaiGaz identified TOO KazRosGas as the single operator of the Agreement.

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    The relationship between Russia and Turkmenistan in the gas sector is based on the long-term bilateral Agreement of Cooperation in the Gas Industry signed in 2003 and effective for 25 years.

    Within the scope of the Agreement OOO Gazprom Export (a Gazprom subsidiary) and Turkmenistan’s national gas trader Turkmenneftegaz concluded a long-term purchase and sale contract for Turkmen natural gas.

    Turkmen gas is supplied via the Central Asia – Center transit gas pipeline system crossing Uzbekistan, Kazakhstan and Russia. Gazprom acts as the operator of Turkmen gas transit across Uzbekistan and Kazakhstan according to intergovernmental agreements.

    The supplements and amendments to the long-term gas purchase and sale contract between OOO Gazprom Export and Turkmengaz State Concern were signed in December 2009. Halted due to an accident at the Central Asia – Center gas pipeline in Turkmenistan, Turkmen gas supplies were resumed in early 2010.

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    In 2003 Gazprom and the Government of the Kyrgyz Republic signed the long-term Agreement of Cooperation in the Gas Industry for the period of 25 years.

    In 2006 Gazprom and the Government of the Kyrgyz Republic signed the Memorandum of Intent to establish a Russian-Kyrgyz joint venture in the oil and gas sector.

    In 2007 Gazprom and the Government of the Kyrgyz Republic entered into the Agreement on Basic Principles for Geological Exploration. As part of the Agreement, Gazprom obtained two licenses for the Kugart and Eastern Mailu-Suu areas.

    In 2008 Gazprom and the Government of the Kyrgyz Republic signed the Memorandum of Understanding to develop cooperation within the privatization of a part of the state-owned stake in OAO Kyrgyzgaz. In 2011 Gazprom and the Government of Kyrgyzstan signed two protocols on resumption and promotion of further cooperation.

    In April 2014 Gazprom and Kyrgyzgaz entered into the Sales and Purchase Agreement for a 100% stake in KyrgyzgazProm (renamed OOO Gazprom Kyrgyzstan), a wholly-owned subsidiary of OAO Kyrgyzgaz.

    Gazprom Kyrgyzstan is the sole importer of natural gas to Kyrgyzstan and owner of the country’s gas transmission and distribution systems.

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    The cooperation between the Government of the Republic of Tajikistan and Gazprom is regulated by the Agreement on General Principles for Geological Exploration of Oil and Gas Prospects in the Republic of Tajikistan, signed in 2008.

    In 2003 the long-term Agreement of Cooperation in Gas Industry was signed for a period of 25 years. Gazprom EP International is Gazprom’s wholly-owned subsidiary operating the hydrocarbon prospecting and production project in Tajikistan.

    By now, drilling of the Shakhrinav-1p ultra-deep prospecting well has been completed. Besides, Gazprom extended licenses for hydrocarbons prospecting and exploration within the Sarykamysh and West Shohambary areas.

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    Central Asia – Center (CAC) gas pipeline system

    The Central Asia – Center (CAC) gas pipeline system is currently the main thoroughfare for gas export from Turkmenistan, Uzbekistan and Kazakhstan via the Russian Federation.

    With a view to provide gas transmission capacities for transiting Turkmen, Uzbek and Kazakh gas, the participants of the Uzbekistan – Kazakhstan – Russia transportation chain took steps aimed at securing the reliability of transportation and expanding the CAC GTS as well as concluding mid-term contracts for transit via Uzbekistan and Kazakhstan.

    Presently the CAC GTS capacities allow for transporting the whole volume of Central Asian gas purchased by Gazprom Group.

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    Developing hydrocarbon fields beyond the FSU

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    In 2000 Gazprom and PetroVietnam signed the Agreement on conducting geological exploration of block No. 112 offshore Vietnam. Vietgazprom, a joint operating company (JOC) implements the contract. In 2007 the Bao Vang gas & condensate field was discovered within block No. 112, in 2009 – the Bao Den field. Presently development activities are being conducted at block No. 112 under the Oil and Gas Contract conditions with a view to estimate their reserves and commercial significance.

    In 2008 Gazprom and PetroVietnam signed an Agreement on further cooperation stipulating geological exploration activities at blocks No. 129, 130, 131, 132 offshore Vietnam as well as cooperation broadening in gas and oil fields development in Russia and third countries.

    In 2012 Petrovietnam and Gazprom signed an agreement for the latter to join the development project for blocks 05.2 and 05.3 located offshore Vietnam. In 2013 Gazprom and Petrovietnam launched commercial gas production from the Moc Tinh and Hai Thach fields of licensed blocks 05.2 and 05.3 offshore Vietnam, with the recoverable gas and condensate reserves amounting to 35.9 billion m3 and 15.2 million t respectively.

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    In 2005 within the Rafael Urdaneta tender Gazprom obtained two licenses for exploration and development of natural gas fields at the Urumaco I block in the Gulf of Venezuela.

    In 2011 Gazprom and Petroleos de Venezuela (PdVSA) signed the Memorandum of Understanding stipulating possible creation of a joint venture for the Robalo gas field development in the Gulf of Venezuela.

    In addition, OAO Gazprom holds a 20% stake in the National Oil Consortium (NOC) established by several Russian companies in order to develop the giant Junin-6 heavy oil field in the Orinoco River basin. NOC and PdVSA set up the PetroMiranda joint venture to develop the Junin-6 block. In September 2012 first oil was produced at the Junin-6 block.

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    In 2008 Gazprom was announced as the winner of the hydrocarbons exploration and production tender for the onshore El Assel area located in the Berkine Basin of Algeria. Gazprom EP International B.V. is the project operator.

    In 2010 hydrocarbon reserves were discovered in the Ordovician deposits. The daily well production rate reached some 39.5 thousand m3 of gas and 75.7 t of oil.

    Berkine Basin in Algeria
    Berkine Basin in Algeria
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    In 2008 Gazprom, YPFB and Total E&P Bolivie signed the trilateral Memorandum envisaging the joint assessment of the Azero and Carahuaicho blocks.

    The project’s shareholding structure at the stage of exploration in the Acero block is as follows: Gazprom Group (Gazprom EP International) – 50%, Total (Total E&P Bolivie) – 50%.

    In 2010 Gazprom Group and Total signed a Farmout Agreement on the geological exploration project for the Ipati and Aquio blocks in Bolivia. Gazprom Group (represented by Gazprom EP International) holds 20% in the project, Total – 60%, Argentina’s petroleum company Tecpetrol – 20%.

    Azero, Ipati and Aquio licensed blocks in Bolivia
    Azero, Ipati and Aquio licensed blocks in Bolivia
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    In 2009 OAO Gazprom Neft as an international consortium operator (share – 30%) won a tender for developing the Badra field in Iraq. In late 2013 first oil was produced in the field, in 2014 the full-scale project development began. Gazprom Neft implements three projects in Iraq. In 2012 the company signed an agreement on prospecting and developing the hydrocarbon reserves of the Garmian and Shakal blocks in Kurdistan’s south. Gazprom Neft acquired a 40% stake in the Garmian project and 80% in Shakal. In early 2013 Gazprom Neft entered into another project in Kurdistan, having acquired an 80% share in the Halabja block. All three projects are implemented under the production sharing agreement (PSA).

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    Between 2006 and 2007 as a result of the tender procedures Gazprom obtained the right to explore and develop hydrocarbons in the promising licensed blocks No. 19 (offshore the Mediterranean Sea) and No. 64 (300 km south of Tripoli).

    The projects are regulated by the Exploration and Production Sharing Agreements (EPSA) signed with Libya’s National Oil Corporation (NOC). By early 2011, seismic survey had been completed and preparations for exploratory drilling had been made for both projects. Drilling of an exploratory well was conducted at block No. 64, however, after the start of armed hostilities in the region, the well was abandoned.

    In 2007 following the asset swap deal with BASF, Gazprom acquired a 49% stake in Libya’s oil concessions C96 and C97 owned by Wintershall. These concessions are governed by the agreements effective until 2026. The concessions include nine fields with As Sarah as the largest. In 2010 concessions C96 and C97 yielded 1.92 million t of oil, 0.1 million t of condensate and 227 million m3 of gas.

    Gazprom is also looking into its potential involvement in oil and gas projects in Argentina, Brazil, Bangladesh, Egypt, Pakistan, Iran, Sri Lanka, Uruguay, the Dominican Republic, Tanzania, Mozambique, Myanmar and some other countries.

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