On February 17, 1993 the state gas concern Gazprom was transformed by the resolution of the Government of the Russian Federation in pursuance of the decree of the Russian President to joint-stock company. Thanks to continuous development Gazprom from the Ministry of the gas industry of the USSR turned into successful International Corporation.

If to take one word by which it would be possible to determine development of Gazprom during 25 years, it is efficiency. Numerous administrative decisions were directed on increase of overall performance of the company. Initially Gazprom was engaged practically only in production, transportation and sale of gas. Thus even gas sale within the country was not normally debugged. Therefore it was not practically paid for gas in Russia in the 1990s. In 1997 for increase of discipline of payments for gas JSC Mezhregiongaz was created (JSC Gazprom Mezhregiongaz today).

Networks of low pressure, on which gas arrives to the Russian consumers, in the 1990s were shared between more than 300 companies and privatized. Most of new owners at once ceased to be engaged in modernization of networks. Moreover, they collected a payment for gas from consumers but preferred not to transfer these funds to the supplier of gas — Gazprom. JSC Mezhregiongaz began to sign contracts with consumers directly. Gradually most of owners of regional gases and gorgazes decided to leave this troublesome business and sold the assets to Gazprom.

Consolidation of networks of low and average pressure within JSC Gazprom Gas Distribution allowed bringing an order to this system and starting the large-scale program of gasification of the Russian regions, if in 2005 gasification level countrywide made about 50%, now it exceeds 68%.

Mining and gas transmission companies of Gazprom increased efficiency of the work thanks to refusal of non-core activity. The assets allocated from them were concentrated in the specialized enterprises: Gazprom Pererabotka, Gazprom UGS, Gazprom Tsentrremont, Gazprom Geological Exploration, Gazprom Gazenergoset, Gazpromtrans, etc.


JSC Gazprom Export is responsible for gas export. Deliveries to foreign countries steadily grow, if in 2003 gas export made 133 billion cubic meters, in 2017 it made already 194.4 billion cubic meters. To deliver gas to consumers, new gas pipelines were constructed: Yamal-Europe, Blue Stream and Nord Stream. Now there is a construction Nord Stream — 2 and Turkish Stream. In the early nineties over 90% of export of the Russian gas went through the territory of Ukraine that allowed this country to demand constantly various preferences for it. Now this indicator makes about 50%.

Recently it is often possible to hear criticism to Gazprom for construction of new export gas pipelines. After all the gas pipelines going across the territory of Ukraine are loaded not for 100%. Why to spend money and to build new capacities when it is possible to use the existing ones? First of all it is necessary to understand that the volume of export of the Russian gas promptly grows recently therefore the Ukrainian capacities will not be enough for its providing. Besides, transit capacities in the territory of Ukraine were created from the middle of the 1960s to the middle of the 1980s. The design term of operation of the pipes laid then makes 33 years. Therefore, even the «newest» sites of the Ukrainian gas transmission system exceed the limit of the design term of operation and they need to be changed, even more sharply the situation with gas-distributing units the majority of which became outdated and work at the limit of the resources. The Ukrainian gas transmission system needs large-scale modernization. However Ukraine has no money for it. For example, experts of Mott MacDonald (the international consulting company with headquarters in Great Britain) considered that Ukraine needs to invest in «pipe» 4.8 billion dollars in seven years (about 686 million dollars a year). It is really invested several times less. The Ukrainian authorities try to attract foreign investors but still unsuccessfully. Investors can be understood: after all long-term guarantees of loading of transit Ukrainian gas pipelines do not exist. The existing contract for transit of the Russian gas comes to the end at the end of 2019.

Gazprom repeatedly offered Ukraine the help in modernization of gas-transport system. However the Ukrainian authorities proudly refused such offers including the gas transmission system in the basis of their independence. As a result the Ukrainian gas-transport system gradually decays.

Now it is said that the Nord Stream gas pipeline is necessary for bypassing Ukraine. However Gazprom started studying this project in the late nineties when Ukraine was a friendly for us country and no political conflict existed. Simply for delivery of gas from the Yamal Peninsula to Europe this route is shorter. Extent of the central gas corridor which comes to Ukraine, makes about 6 thousand km and northern — 4 thousand km. Besides, the northern gas corridor is constructed based on the most advanced technologies. On the gas pipeline Bovanenkovo-Ukhta pressure in pipes makes 120 atmospheres and further — 90 atmospheres. In the central corridor of the Russian territory pressure is 75 atmospheres and in Ukraine some sites work at 55 atmospheres. The less is pressure in a pipe, the more gas is burned for ensuring its transportation. An average distance between compressor stations makes 240 km in the north and in the central corridor — 120 km. The efficiency of gas-distributing units in a northern corridor is twice higher. Here 32 MW and 25 MW gas-pumping units work. As a result compressor stations occupy much smaller space. Thus, transportation of gas along a northern corridor is much cheaper than on the central. Thanks to commissioning of new fields and construction of gas pipelines the Russian enterprises could arrange production of the most modern samples of pipes and the equipment. It gave enormous effect for development of our country.

There is a natural question: why at the time of the USSR it was decided to build more extended export route? The matter is that together with construction of transit export capacities there was a large-scale gasification of the most industrially developed regions of the country including Ukraine. Today Gazprom faced a problem of modernization of the operating gas-transport system. Naturally, it is better to modernize only those capacities which are necessary for providing domestic market with gas, to construct for export new and shorter route. Gasification of northern regions of the country is carried out in parallel.

It is not a secret that the tariff for transportation of gas on Nord Stream is significantly lower than across the territory of Ukraine. Thus the Ukrainian authorities constantly declare a desire to increase even more the tariff for transit of the Russian gas. It is not necessary to be surprised that Gazprom seeks to minimize transit volume through this country.

Gazprom works also at the market of the Pacific Rim. So far there is supply of the liquefied natural gas generally from the shelf project Sakhalin-II. Thus Gazprom actively masters the Chayandinsky field in Yakutia and builds the Force of Siberia gas main pipeline. At the end of 2019 the first gas will go to China on the new gas transmission system. Gradually the volume of deliveries will be brought to 38 billion cubic meters of gas annually. At the same time there is a gasification of the Russian regions of Eastern Siberia and the Far East. It should be noted that gas of fields of Eastern Siberia contains not only methane. There is a lot of ethane, propane, butane and helium in it. Therefore gas will be recycled on Amursk gas-processing and helium plants.


Gazprom constantly enters new mining capacities for providing Russian and foreign consumers with gas. Let’s list some of fields which Gazprom put into operation in 25 years: in 1993 — Komsomol, in 1996 – Zapadno-Tarkosalinskoye, in the 1999s — Gubkinskoye and Myldzhinskoye and in the fall of 2001 — a huge field Zapolyarnoye. Besides, in 2003 Gazprom began gas production on the Tab-Yakhinsky site of the Urengoy field. Then the Vyngayakhinsky field was started. In September, 2004 production on the Ety-Purovsky field started. And in October of the same year Gazprom brought Pestsovy Square of the Urengoy field into operation. In December production on Aneryakhinskaya Square of the Yamburg field began.

In 2006 Gazprom began production on Harvutinskaya Square of the Yamburg field and the achimovsky deposits of the Urengoy field started development. Achimovsky deposits are located at a depth of 3.2-4 thousand meters and it is much more difficult for development than being above Cenomanian (1.1-1.7 thousand meters) and Valanginian (1.7-3.2 thousand meters) layers. In 2003 Urengoygazprom and the German Wintershall AG created Achimgaz joint venture on a parity basis. In 2008 this joint venture began production of gas and condensate. At the end of 2009 Gazprom started independent gas production from the achimovsky layers of the Urengoy field (on the second site).

In December, 2007 solemn start-up of the Southern Russian field took place. In 2010 gas from Yareyskaya Square of the Yamsoveysky field and Zapadno-Pestsovaya Square of the Urengoy field came to Uniform system of gas supply. And in December, 2011 apt-albian deposits of Nydinskaya Square of the Bear field were put into commercial operation.
At the end of 2012 production on huge Bovanenkovo gas field located on the Yamal Peninsula began. In 2013 the Kirinsky gas-condensate field on the shelf of the Sea of Okhotsk is put into operation. Here for the first time in Russia Gazprom used an underwater mining complex.


In the 1990s Gazprom was practically not engaged in production of liquid hydrocarbons. Though for any large company gas and oil production are accompanying processes. For strengthening of the oil direction in 2005 Gazprom got the Sibneft Company. In May, 2006 it was renamed into Gazprom Neft. For receiving synergetic effect a number of gas and oil divisions of Gazprom were integrated into oil «daughter». Approach, which followed Gazprom concerning production of hydrocarbons, had strategic character. At the time of purchase of Sibneft it was supposed that production of black gold within the company will increase on average on 4% a year, production of hydrocarbons will reach in 2020 80 million tons of oil equivalent and input in development of all oil fields of Gazprom Neft will allow to come in 2010-2012 for peak production in volume about 55 million tons. In 2011 this indicator was already exceeded as total production of hydrocarbons (considering shares in joint ventures) and made 57.25 million tons. In 2013 Gazprom Neft became the first Russian company which began oil production on the shelf of the Arctic — on Prirazlomnoye field in the Pechora Sea.

Following the results of 2017 Gazprom Neft extracted 89.8 million tons in oil equivalent. At the same time increased production of liquid hydrocarbons (first of all gas condensate) and other «daughters» of Gazprom. If in 2008 10.9 million tons of condensate were extracted, in 2017 15.9 million tons were extracted. It is necessary to emphasize that Gazprom Neft realizes production projects not only in Russia, but also abroad, for example, in Iraq.

Gazprom Neft relied on sale of highly profitable oil products. The company was engaged in large-scale modernization of oil refineries and networks of gas station. As a result gas station of Gazprom Neft became the most profitable in Russia. And the network of Gazprom Neft gas station works not only in our country, but also abroad. In particular, a «daughter» of Gazprom possesses a controlling stake of the Serbian company NIS.

At the end of 2007 the company started developing actively bonus subsidiaries which had to be engaged in such directions as a bunkering of vessels (Gazpromneft Marín Bunquer), realization of aviation fuel (Gazpromneft-aero), and also production and realization of oils and greasing substances (Gazprom Neft — greasing substances). Later, in 2014, the specialized company which is engaged in realization of bituminous materials is created. Today each of these enterprises is the leader of the Russian market in the segment and successfully advances goods and services in the foreign markets. For example, JSC Gazpromneft-Aero in 2009 for the first time began to fill planes outside Russia. Now the company works at 187 airports of 60 countries of the world.


It is not a secret that gas is generally applied to receiving the electric power and heat. In April, 2007 the Board of directors of Gazprom approved Strategy of the company in power industry. The strategic objective of development of electric power generation business determined increase of capitalization of corporation at the expense of increase in profitability of the capital, optimization of fuel balance in the country and achievements of synergetic effect from connection of gas business and power industry. For development of electrical power activity of Gazprom Group acquisition of shares in the generation companies and construction of new capacities, in particular, was provided. Strategy included formation of the holding company for consolidation of electrical power assets of Gazprom Group.

In 2007-2008 Gazprom redeemed shares of the generation companies during additional issues of their actions. In 2009 the specialized company Gazprom Energoholding consolidated controlling stakes of JSC Mosenergo, JSC TGC-1, JSC OGK-2 and JSC OGK-6 and started management of these assets according to uniform corporate standards. Thus, there were generating assets of Moscow and St. Petersburg under control of Gazprom and also some other regions of the country. Gazprom became the largest investor in the Russian power industry.

In 2011 JSC OGK-2 absorbed JSC OGK-6 that allowed lowering expenses. On August 13, 2013 JSC Gazprom Energoholding was recognized as the winner of auction on sale of the stocks PAO MOEK (89.9754%) belonging to the city of Moscow. This company supplies Moscow and some towns of near Moscow area with heat.

Thanks to modernization of the operating generating objects and construction new Gazprom significantly increased overall performance of the enterprises. Now JSC Gazprom Energoholding is the owner of electrical power assets, largest in the country (controls more than 80 power plants). Gazprom Energoholding enters ten leading European producers of the electric power.
Thus, Gazprom shows the growing efficiency of the business. The company surely develops in three directions: gas, oil and electric power.