1.1 Gazprom Group’s Role in National Development

Contribution to Russian economy

In 2018, the Gazprom Group demonstrated strong financial and economic performance. Gross added value generated by Gazprom during the reporting year was RUB 4.8 trillion, or almost 4.6% of the gross domestic product of the Russian Federation.

The Gazprom Group is one of the core taxpayers in Russia. In 2018, the total tax payments to the budgets of all levels exceeded RUB 3.2 trillion. Mineral extraction tax and customs payments account for the majority of such payments, over 55%.

Information on the indicators describing the Gazprom Group’s contribution to the economy of the Russian Federation in 2015–2018 is provided in Appendix

Information on generated and distributed direct economic value as of 2015–2018 is provided in Appendix

RUB 3.2


are the total tax payments in 2018




is Gazprom’s share in the gross domestic product of the Russian Federation in 2018

Operational performance

Gazprom is the world leader by natural gas reserves and production, one of the largest Russian companies by liquid hydrocarbons production and processing, as well as by installed capacity and heat and electrical power generation.

Gazprom Group's operations scale

(1) Share of PJSC Gazprom’s international gas sales under contracts of Gazprom Export  LLC, including volumes sold via the ETP and in course of trading operations and under direct contracts of GAZPROM Schweiz AG, in consumption of gas in Europe (other than FSU states).

Gazprom’s key operating indicators as of 2018

31.1 bcm

Gas processing (tolling arrangements excluded)

498.7 bcm

Natural and associated petroleum gas production in Russia

67.4 mmt

Crude oil and gas condensate processing (tolling arrangements excluded)

15.9 mmt

Gas condensate production in Russia

153.2 billion kWh

Electric power generation in Russia and in foreign countries

48.3 mmt

Crude oil production in Russia

131.25 million Gcal

Heat energy generation in Russia

(1) Including the share in production of organizations in which Gazprom has investments classified as joint operations.

Key projects

The Gazprom Group implements large-scaled projects aimed at increasing hydrocarbons production and processing, enabling their delivery to customers, as well as at increasing electricity and heat generation and sales.

In 2018, the key Gazprom Group’s projects were:

  • construction of the Ukhta — Torzhok 2 gas pipeline system;
  • expansion of the Bovanenkovo — Ukhta 2 gas pipeline system;
  • construction of the Nord Stream 2 gas pipeline;
  • construction of the TurkStream gas pipeline;
  • construction of the Power of Siberia gas pipeline;
  • development of gas transportation facilities of the North-Western Region UGSS, Gryazovets — Slavyanskaya CS segment;
  • loopings construction at Gryazovets — Vyborg gas pipeline in order to close String II at Gryazovets — Volkhov segment;
  • pre-development operations at Cenomanian-Aptian deposits of the Bovanenkovskoye oil and gas condensate field (OGCF);
  • pre-development operations at the Urengoyskoye OGCF;
  • pre-development operations at the Chayandinskoye OGCF of Yakutia gas production centre;
  • pre-development operations at the Kovyktinskoye gas-and-condensate field (GCF), Irkutsk gas production centre;
  • pre-development operations at the Kirinskoye field, Sakhalin gas production center;
  • pre-development operations at the Yuzhno- Kirinskoye field, Sakhalin gas production center;
  • pre-development operations at the Kamennomysskoye-Sea gas field in the Ob Bay;
  • construction of the Amur Gas Processing Plant (GPP) in the vicinity of Svobodny town in the Amur Region;
  • construction of a liquefied natural gas (LNG) receiving, storage and regasification terminal and the floating storage and regasification unit (FSRU) in the Kaliningrad Region;
  • construction of the LNG production, storage and shipment terminal in the vicinity of Portovaya CS in the Leningrad Region;
  • construction of the segment of String II of the Urengoy — Surgut gas condensate pipeline (107 km — 288 km);
  • construction of the condensate stabilizer unit of Achimov deposits in the Nadym-Pur-Taz Region;
  • construction of the Urengoy — Purpe oil and gas condensate pipeline;
  • pre-development operations at the Novoportovskoye field in the Yamal Peninsula;
  • pre-development operations at the Vostochno-Messoyakhskoye northern onshore deposit of the Russian Federation (YaNAA);
  • pre-development operations at the Prirazlomnoye field (oil production project in offshore Arctic);
  • construction of the Grozny Thermal Power Plant (TPP).

The gas business accounts for the majority of Gazprom capital expenditures (about 2/3 of the total investments). In 2018, the PJSC Gazprom investment program stipulated implementation of all strategically important projects of the Company.

PJSC Gazprom Investment Program indicators — assimilation of capital expenditures, VAT included, 2015–2018, RUB billion

Pursuant to the draft investment program for 2019, the capital expenditures are going to amount to RUB 963.0 billion

The strategic projects are implemented in the northern, eastern and southern areas.

In the northern area, Gazprom is developing large-scale gas and oil production centres. Yamal Peninsula production complex is developed in the Extreme North conditions, where Gas Production Facility No. 3 of the Bovanenkovskoye field and Ukhta — Torzhok 2 were put in operation in 2018. Oil production is increased further at the unique Prirazlomnoye field. That is the only Arctic Deposit developed in the freezing sea environment. In 2018, the Northern Gas Transmission Corridor was expanded further to supply gas to the central and the north-western regions of the Russian Federation and exports by the Nord Stream 2 gas pipeline that is under construction. Construction of the LNG production, storage and shipment terminal in the vicinity of Portovaya CS is in progress. In the eastern area, the Eastern Gas Program is implemented in order to supply gas to the regions of Siberia and the Far East and export to China by the Power of Siberia gas pipeline. The Amur Gas Processing Plant (GPP) would become an important component of the value chain; there, valuable components will be extracted from gas from the Chayandinskoye and Kovyktinskoye Fields for petrochemical and other industries.

Pre-development operations are underway at the Kirinskoye and Yuzhno-Kirinskoye fields, which are the basis of the Sakhalin gas production center.

In the southern area, construction of the TurkStream gas pipeline continued in 2018 to supply gas to Turkey and European countries. The first power unit was commissioned at the Grozny TPP, which plays an important role in power supply of the southern regions of Russia.