Gazprom Launches North American Natural Gas Business
Gazprom Marketing & Trading USA, Inc. has begun trading and marketing of natural gas in North America, marking the first entry by a Gazprom Group company in the United States.
"The development of new markets and products is key to Gazprom Group's global energy strategy. We have now achieved our goal of bringing the world's largest gas company into the world's largest gas market," said Vitaly Vasiliev, Chief Executive Officer of Gazprom Marketing and Trading Limited in the United Kingdom. "Our U.S. affiliate is now off and running, and we look forward to significant growth and profitability from our expanding geographical base."
Gazprom Marketing & Trading USA has acquired physical gas supplies from counterparties at designated pipeline hubs across North America by executing a number of innovative, long-term gas swap transactions that have allowed it to quickly gain a substantial physical gas supply position in North America.
"These gas swaps have given us a strong supply foundation to build our marketing and trading operations," said John Hattenberger, President of Gazprom Marketing & Trading USA. "We have already signed deals giving us more than 350 million cubic feet per day of physical supplies at several different locations all across the U.S., for the next three to seven years. Our goal now is to grow from that position rapidly and expand into all major North American markets."
Gazprom Marketing & Trading USA will also market liquefied natural gas (LNG) exported to North America by its Gazprom Group affiliates. In May 2009, the company signed long-term agreements enabling it to buy LNG from the Sakhalin-2 LNG plant, off Russia's Pacific coast, which started production in 1Q 2009, regasify the LNG in a facility in Baja California, Mexico, transport it by pipeline to southern California, and sell natural gas into southwestern U.S. markets. The company also plans to import LNG into the USA from the giant Shtokman LNG projects in the Arctic.
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