The Gazprom Board of Directors took note of the information about the impacts caused by the events of 2016 on the long-term outlook for the global energy market.
It was highlighted that a number of major economic and geopolitical events had taken place in 2016, which could potentially affect the development of the global energy market. Among them were: oil price stabilization at a rather low level, industry-wide reduction in capital expenditures, postponement of planned investment decisions for the construction of gas liquefaction capacities across the world, growth recovery of Chinese demand for gas, lifting of economic sanctions against Iran, signing of the Paris Agreement on climate change, and others. However, it was noted that the events of 2016 had not led to a substantial revision of the long-term outlook for the global energy market.
In this context, Gazprom continued its systematic efforts to diversify gas supplies and increase its share in the key markets of Europe and Asia-Pacific. Among other things, the Company’s projects for Nord Stream 2, the Power of Siberia gas trunkline (eastern route of Russian gas supplies to China), and the Amur gas processing plant are going according to schedule. The TurkStream project was resumed. In addition, Gazprom signed the Memorandum of Understanding on the Baltic LNG project with Shell and the Memorandum of Understanding on underground gas storage and gas-fired power generation in China. The aforementioned efforts will facilitate the Company’s sustainable development and strengthen its positions in the key markets of Europe and Asia-Pacific.
It was emphasized at the meeting that, despite the changes in the external environment, Gazprom’s positions would remain stable in the long term thanks to, inter alia, the Company’s vast gas reserves, well-developed production and transportation infrastructure, long-term contracts, and diversified export routes.