Rosneft planning new gas acquisitions, wants to poach Gazprom clients
MOSCOW. April 29 (Interfax) - Rosneft plans to be selling 100 billion cubic meters of gas in Russia by 2020, including 60 bcm to power companies and 14 bcm to the chemicals industry, the state oil major said in a presentation for investors in London and New York.
Another 16 bcm of gas is expected to be sold in Sverdlovsk Region by Itera , of which Rosneft owns 51%, and 10 bcm is to be sold to other customers.
Fighting for Gazprom clients
The power companies listed by Rosneft include companies with which contracts have already been signed: OJSC Inter RAO UES , Fortum and E.On Russia . The others include Moscow United Energy Company (MOEK) and Enel OGK-5 .
The Moscow city government has included nearly 90% of shares in MOEK in its medium-term privatization program, while Gazprom Energoholding (GEH) in April filed an application with the Federal Anti-Monopoly Service (FAS) for permission to buy these shares. MOEK used about 3.2 bcm of gas in 2011. Gazprom listed MOEK among the counterparties with which it signed contracts for gas supplies in 2013-2017. Gazprom supplied all of MOEK's gas in 2011.
Enel OGK-5 uses about 7 bcm of gas per year, both from Gazprom and independent producers.
Rosneft has also stated its interest in supplying gas to chemical companies EuroChem, PhosAgro, Acron and Bashkir Chemistry.
PhosAgro, which has a contract with Gazprom, currently uses 1.7 bcm of gas per year, but expects to launch a new ammonia unit in Cherepovets in 2016-2017 that will need at last 0.9 bcm of gas per year.
EuroChem head Dmitry Strezhnev has said that the company had a long-term contract with Gazprom for 2008-2012 that has been renewed for another year. EuroChem is now holding talks with Gazprom and other suppliers on future gas supplies, he said. EuroChem currently uses 4.7 bcm of gas annually. However, following the recent purchase of a gas asset that produces less than 1 bcm of gas, EuroChem's gas needs will amount to 3.7 bcm and the company has not ruled out that it might buy more gas assets.
From each according to their ability
Taking into account the acquisition of TNK-BP and its 51% stake in Itera, Rosneft plans to sell 41 bcm of gas in 2013, 51 bcm in 2014, 56 bcm in 2015 and 63 bcm in 2016. The next designated horizon is 2020, when the company plans to sell 100 bcm.
Rosneft's new vice president for gas projects, Vlada Rusakova said that by 2020 the company will be producing 47 bcm of gas at existing fields and 53 bcm at new ones. According to the presentation, the Kharampurskoye field with output of 21 bcm will become the main production asset in this period, followed by Rospan with 15 bcm. The company plans to produce 6 bcm of gas (associated petroleum gas) at the Vankor field, 3 bcm at the Kynsko-Chaselskaya group of fields and 2 bcm at Sakhalin-3 fields.
The presentation states that another 6 bcm of gas will come from "new acquisitions."
Itera is expected to see little growth, producing 6 bcm in 2013, 8 bcm in 2016 and 7 bcm in 2020.
TNK-BP assets are expected to contribute 18 bcm this year, 23 bcm in 2016 and 34 bcm in 2020. The assets of Rosneft itself, which currently produce 17 bcm of gas, are expected to produce 32 bcm in 2016 and 59 bcm in 2020.
Rusakova said that Rosneft plans to double its share of the Russian gas market to 20% in 2020 from almost 10% at present. The company's market share could increase to 22% in 2020-2025, the presentation states.
Claims staked out
It was reported earlier that Rosneft has signed a five-year contract with Finland's Fortum to supply 2.3 bcm-2.5 bcm of gas per year in 2013-2017. Fortum used 6.77 bcm of gas in 2011.
The oil company also signed a contract with E.On Russia to supply 1.6 bcm of natural gas and/or dry stripped gas annually in 2013-2015 to the power company's Surgutskaya GRES-2 power plant.
Rosneft and Inter RAO have signed a 25-year contract for the delivery of up to 35 bcm of gas annually starting in 2016. Rosneft plans to deliver 32.3 bcm of gas in 2016 under this take-or-pay contract. Rosneft will supply gas to all Inter RAO power plans except those in Kaliningrad and Sochi due to their geographical location.
