GAS EXPORT AND ENHANCING RELIABILITY OF GAS SUPPLY TO EUROPE St. - PowerPoint PPT Presentation

GAS EXPORT AND ENHANCING RELIABILITY OF GAS SUPPLY TO EUROPE St. Petersburg, June 18, 2019

GAS SALES BY GAZPROM GROUP Volume and average price* of Gazprom Group’s gas exports Volume and average price* of Gazprom Group’s gas beyond former Soviet Union (FSU)** exports in FSU 300 120 243.3 242 228.3 250 100 81.7 184.4 174.3 159.4 70.2 200 80 RUB/1,000 m 3 66.1 RUB/1,000 m 3 148.3 148.1 156.6 151.0 59.4 56.7 150 60 48.1 bln m 3 bln m 3 40.3 11,259 11,970 12,138 13,487 15,057 15,500 38.1 35.0 33.2 100 40 11,763 11,671 6,411 9,414 9,167 8,500 10,116 11,911 10,263 9,237 10,226 50 20 9,490 8,509 7,039 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Exports volume, bln m 3 Average selling price, RUB/1,000 m 3 (right axis) Gross revenue* from gas sales beyond FSU Gross revenue* from gas sales in FSU 3,770 4000 120 750 695 35 627 3500 30 100 2,777 2,686 2,824 505 494 3000 486 480 25 23.6 80 500 1,396 1,358 1,764 1,807 2,116 2,150 2500 390 RUB bln USD bln 363 20.2 20 341 RUB bln 323 2000 60 16.2 15.8 66.3 15 USD bln 1500 60.0 59.9 58.1 12.6 55.7 40 250 11.4 48.4 10 1000 44.0 45.3 44.7 7.8 40.2 6.2 20 5.5 5.1 5 500 0 0 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Gross revenue from sales, RUB bln Estimated currency proceeds, USD bln (right axis)*** * Inclusive of excise tax and customs duties ** Gas supplies (including LNG) to foreign countries, except for FSU, under contracts of Gazprom Export and other companies of Gazprom Group *** Based on yearly average exchange rate of USD 2

GAZPROM GROUP’S GAS SALES BEYOND FSU IN 2018 (UNDER CONTRACTS OF GAZPROM EXPORT AND GAZPROM SCHWEIZ AG) Германия 58.5 Germany Турция Turkey 24.0 Италия 22.8 Italy Великобритания UK 14.3 Франция France 12.9 • Total supplies Австрия Austria 12.3 in 2018 reached Польша Poland 9.9 7.9 Нидерланды Netherlands 201.9 bln m 3 * Венгрия Hungary 7.7 Czech Republic Чехия 6.5 • Increase of Словакия Slovakia 5.1 7.5 bln m 3 Греция Greece 3.3 (+3.9%) from Болгария Bulgaria 3.2 previous year Хорватия Croatia 2.8 Finland Финляндия 2.6 • Total supplies Сербия Serbia 2.1 in 2019 Belgium Бельгия 1.8 expected to Denmark Дания 1.7 range from Romania Румыния 1.3 Slovenia Словения 0.5 194 to 204 bln m 3 Switzerland Швейцария 0.4 Macedonia Македония 0.3 Bosnia and Herzegovina Босния и Герцеговина 0.2 0 10 20 30 40 50 60 70 * According to management reports of Gazprom Export bln m 3 * Here and below, data displayed in chart may be different due to rounding 3

GAZPROM GROUP’S GAS SALES TO FSU IN 2018 Belarus Беларусь 20.0 Kazakhstan Казахстан 6.2 Moldova Молдова 3.0 Ukraine Украина 2.7 Armenia Армения 1.8 Lithuania Gazprom’s gas Литва 1.4 sales in FSU Latvia Латвия 1.3 totaled 38.1 bln m 3 * in 2018 Azerbaijan Азербайджан 1.0 Estonia Эстония 0.4 Kyrgyzstan Kyrgyzstan Кыргызстан 0.3 Georgia Грузия 0.04 South Ossetia Южная Осетия 0.04 * According to consolidated financial statements of Gazprom prepared 0 5 10 15 20 under IFRS bln m 3 4

PIVOTAL ROLE OF GAZPROM GROUP’S GAS IN EUROPEAN MARKET Gazprom Group’s share * in European gas consumption Gazprom Group’s * share in European gas imports** 68% 68% 34% 37% 66% 33% 30% 25% 30% 31% 64% 64% 26% 27% 23% 27% 26% 63% 58% 57% 56% 56% 55% 598 602 569 564 583 551 549 542 540 542 507 48% 486 305 291 295 281 271 273 262 257 252 258 243 217 147.6 159.4 179.3 194.4 201.9 150.5 158.8 140.6 138.6 150.3 139.9 162.7 147.6 159.4 179.3 194.4 201.9 139.9 162.7 150.5 158.8 140.6 138.6 150.3 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Import needs, bln m3 Gas sales by Gazprom Group*, bln m3 Gas consumption, bln m3 Gas sales by Gazprom Group*, bln m3 Gazprom Group's* gas share Gazprom Group's* gas share Gas supplies to Europe by major exporters and producers, bln m 3 2017 201.9 194.4 2018 134.8 130.8 39.5 49.4 48.5 45.0 43.6 35.7 24.1 23.4 13.1 12.6 9.6 8.1 6.8 7.8 7.0 4.8 4.6 2.6 3.7 3.6 4.1 2.6 0.1 1.8 1.3 2.2 Gazprom* Norway Algeria UK Netherlands Qatar Nigeria Iran Azerbaijan Yamal LNG Libya USA Trinidad and Peru Others Tobago * Gas sales to European countries beyond FSU under contracts of Gazprom Export and GAZPROM Schweiz AG ** Difference between consumption and indigenous production 5

GAS SUPPLIES TO NORTHWESTERN EUROPE* Medium-term supply forecast for northwestern Europe mln m 3 /day 300 Independent industry experts from Platts 200 Analytics predict that in the medium term Russian gas supplies will help offset 100 declining production from Groningen field and Norway’s supply limitations. 0 Norway Indigenous production Russia LNG * UK, France, Belgium, Netherlands, Germany, Denmark, Sweden, Luxembourg, Switzerland Source: Platts Analytics 6

UNDERGROUND GAS STORAGE: ENSURING STABLE, RELIABLE AND FLEXIBLE SUPPLIES UGS characteristics as of December 31, 2018 Working capacity of UGS facilities owned by UGS facility Gazprom Export from 2013 to 2018 Working capacity, Maximum withdrawal bln m 3 rate, mln m 3 /day* 6.0 6,0 bln m 3 Long-term reservations 5.0 4.9 Haidach 1.9 18.9 5.0 4.8 5,0 4.7 4.6 Rehden 0.5 10 4.0 4,0 Katharina 0.3 23.2 Banatski Dvor 0.2 2.5 2.7 3.0 3,0 Damborice 0.3 4.5 2.0 Bergermeer 1.8 26.1 2,0 OVERALL 5.0 85.2 1.0 including short-term 1,0 1.0 40.6 reservations 0.0 TOTAL 6.0 125.8 0,0 2013 2014 2015 2016 2017 2018 Katharina UGS facility had 6 operational caverns; its working capacity and maximum daily deliverability amounted to 317.4 mln m 3 and • 23.2 mln m 3 in 2018. In 2018, working capacity of Damborice UGS facility was increased to 257.6 mln m 3 , raising its maximum daily deliverability to 5.0 mln m 3 . • On June 16, 2018, Memorandum of Understanding was signed with Srbijagas as part of Banatski Dvor UGS expansion project in • order to increase its working capacity to 750 mln m 3 . It is planned to achieve design capacity by 2022, with maximum daily deliverability reaching 10 mln m 3 . * Maximum withdrawal rate under contract, with completely filled UGS facility 7

NORD STREAM 2 Nord Stream 2 project envisages construction of gas pipeline with annual capacity of 55 bln m 3 and total length exceeding 1,200 km from Russia to Germany across Baltic Sea. By now, 58% of gas pipeline has been built. Nord Stream 2 will help enhance reliability of Russian gas supplies to Europe. Russia Estonia Sweden Latvia Lithuania Pipeline segments already built Denmark Line A Line B Russia Nord Stream 2 – projected route Poland Line A Line B 8

TURKSTREAM • TurkStream project envisages construction of export gas pipeline stretching across Black Sea from Russia to Turkey and further to Turkey’s border with neighboring countries • Intergovernmental Agreement signed by Russia and Turkey on October 10, 2016, set out legal framework for TurkStream project • TurkStream’s offshore section is being built by South Stream Transport B.V., while joint design company TurkAkim Gaz Tasima A.S. is responsible for onshore transit section located in Turkey • First string of gas pipeline (15.75 bln m 3 in capacity) is intended for Turkish consumers, whereas second string (with same capacity) will deliver gas to European Union • In November 2018, deep-water pipelaying operations were completed at pipeline’s offshore section ahead of schedule, and coastal sections were connected to deep-water section in Russian and Turkish waters in Q1 2019 • It is planned to bring TurkStream into operation before late 2019 9

THANK YOU FOR YOUR ATTENTION!