Foreign Trade
In 2024, the global energy sector was shaped by the continued growth in demand for traditional energy sources amidst geopolitical instability and increased focus on energy security issues. Consumption of oil, gas, and coal hit historical highs. For many countries, natural gas will remain the most attractive energy resource due to its inherent reliability, ease of use, cost-effectiveness, and environmental advantages. Its continued utilization will be a key driver of economic development.
PJSC Gazprom estimates that global natural gas consumption grew by 100 bcm in 2024, a 2.4% increase year-on-year. This growth was primarily driven by increased demand in Russia, China, and India.
The Asia-Pacific region experienced the most substantial growth in gas consumption during 2024. The Company’s preliminary estimates indicate that consumption in the region increased by over 55 bcm, a 6.3% rise from 2023. As has been the trend, China led this growth with a 32 bcm, or 8.0%, increase in consumption, driven by rising electricity production and growing demand for LNG as a fuel for cargo vehicles. PJSC Gazprom’s increased pipeline gas supplies to China in 2024 met a quarter of the country’s additional gas demand. India also saw substantial growth in gas demand in 2024, up by 7 bcm (10.2%).
The Asia-Pacific region is expected to maintain its position as a leading global energy center. The Gazprom Group enjoys successful partnerships throughout the Asia-Pacific region. In 2024, PJSC Gazprom increased its gas deliveries to China via the eastern route by over 36%. Throughout the year, Gazprom repeatedly set new daily records for gas supplies to China through the Power of Siberia pipeline.
Responding to a request from the Chinese side and in accordance with the signed agreement, PJSC Gazprom delivered an early increase in Russian natural gas exports to China via the Power of Siberia pipeline. Daily supplies reached the maximum contractual level as of December 1, a full month ahead of the schedule originally stipulated in the long-term bilateral gas purchase and sale agreement between PJSC Gazprom and CNPC for the eastern route.
PJSC Gazprom is also expanding its cooperation with Central Asian countries. The Company estimates that natural gas consumption in the region exceeded 110 bcm in 2024, with commercial gas production reaching approximately 150 bcm.
PJSC Gazprom’s supplies to Central Asia are set to boost economic growth over an extended period.
In the European market, gas consumption remained at 2023 levels, due in part to a sharp increase in consumption during Q4 2024.
With that, EU policies continue to artificially suppress gas demand, even at the expense of their own economies. Over the past three years, gas consumption in the European region has fallen by over 100 bcm. This policy has resulted in production cuts and closures of energyintensive industries.
PJSC Gazprom builds comprehensive strategic cooperation with international partners through joint coordinating committees and joint working groups. In 2024, several meetings of joint coordinating committees and working groups and other events were held with international partners from China, Uzbekistan, Algeria, Azerbaijan, Kazakhstan, Mongolia, Vietnam, Bolivia, Iran, and other countries.
International energy organizations remain vital platforms for promoting natural gas as the most accessible, reliable, and environmentally sound fuel. Gazprom Group representatives actively participate in these organizations, putting forward initiatives and proposing topics for events and research.
In 2024, Gazprom Group representatives took part in events organized by the International Business Congress energy initiative, the Global Gas Centre, the Boao Forum for Asia (China), and the UN Economic and Social Commission for Asia and the Pacific (UNESCAP). Furthermore, the Gazprom Group participated in the 29th session of the Conference of the Parties (COP 29) to the UN Framework Convention on Climate Change, the Gas Exporting Countries Forum (GECF), and the “World of Opportunities: Russia — ASEAN” International Business Forum.
These events facilitated discussions on a wide range of pressing issues related to the development of the gas industry, including:
- the current state and trends of commodity markets;
- the current situation and developments in the global gas market;
- the role of natural gas in ensuring the reliability of energy supplies;
- strategies for a just energy transition;
- European and Asian energy policies;
- gasification and electrification of transport, and the use of hydrogen.
The discussions emphasized that stabilizing the global energy market, combined with mitigating climate change and advancing energy security, are essential for sustainable economic development.
Managing sanction-related, price and volume (commodity) risks on external markets
- Ongoing monitoring is maintained over potential sanctions under the existing sanction laws, alongside tracking changes to or new enactments within the US and EU sanctions laws.
- PJSC Gazprom’s management is swiftly notified of new sanctions and related legislative moves.
- Efforts are directed at diversifying energy markets and sales channels.
