Alexander Medvedev, Deputy Chairman, Management Committee, Gazprom spoke to Pipeline Magazine’s Julian Walker about his company’s cooperation with Saudi Aramco, further global expansion plans and the future LNG market
Can you share with us, in terms of your future Middle Eastern strategy, how important was your recent Memorandum of Understanding with Saudi Aramco? And are you looking to expand your Middle Eastern operations?
Middle East promises to become one of the main drivers of the global gas demand growth. Gazprom as a leader of the gas industry, of course, is interested in developing the business in this region. The Memorandum of Understanding that we have signed with Saudi Aramco is one of the important steps towards implementation of this strategy.
Is the MoU indicative of a wider move across the industry towards large firms forging partnerships?
Today’s market brings new challenges to the producers. New market environment requires new approaches. Cooperation of the industry leaders could bring new synergy to the projects boosting their further development. Gazprom is always open for partnership with other industry players. We believe that joint efforts can help us all create new opportunities for business success.
How is Gazprom adapting to the new energy landscape? And how are you looking to drive growth in the coming years?
Gazprom always tries to meet the needs of our customers adapting to the changing market conditions regarding existing contract terms, as well as in creating brand new models of cooperation. I think our recent business results, especially record gas sales in Europe, speak for themselves. We are looking to the future with optimism.
You have signed a contract with Ghana National Petroleum Company to supply gas. Which other countries will you be looking to as new markets?
Gazprom is closely monitoring the market development around the world. We consider markets of South-East Asia, Middle East and Latin America as the most promising for LNG supplies.
What is your strategy to compete with the potential over-supply of LNG in the coming years?
Many analysts already speak about the glut of LNG on the global market. But even in these conditions, our trading arm Gazprom Marketing & Trading signs new interesting contracts with promising consumers. That’s why I would avoid speaking of any critical impact of the current situation on our LNG trading activities. As far as the influence of LNG glut on Gazprom’s pipeline supplies to Europe is concerned, there is no such impact at all. Our export pipelines are fully loaded and European regasification terminals are used just for one third of their capacity. Speaking about Gazprom’s strategy, Gazprom does not intend to rush into any price wars. For Gazprom, the ultimate goal is to maximise revenues for our shareholders including Russian State.