(EnergyAsia, June 18 2014, Tuesday) — A day after cutting off natural gas supplies to Ukraine, Russia’s Gazprom celebrated the listing of its shares on the Singapore stock exchange. The listing underlines Gazprom’s pivot towards the world’s fast-growing economies, giving it access to capital from the region’s cash-flush investors barely a month after it had signed a world record US$400-billion deal to supply natural gas to China.
Russia’s largest gas producing firm said the listing will broaden its investor base globally as it reaches for the “ultimate goal” to boost the liqiudity and 24-hour trading of its share on stock exchanges around the world. Gazprom’s shares are currently traded on different stock exchanges in Moscow, Saint Petersburg, London, the US, Berlin and Frankfurt.
Describing the listing as an “important event” the Singapore Exchange, CEO Magnus Bocker said it would add significantly to its growing stable of mineral, oil and gas companies.
“We look forward to being both a capital raising and business platform for Russian companies expanding their business into Asia,” he said.
Gazprom, with a market capitalisation of US$99 billion, is one of the world’s largest energy companies with exposure to oil and gas exploration, production, transportation, storage, processing and sales.
Gazprom’s deputy chairman Andrey Kruglov, who heads its finance and economics department, said the listing marks a key milestone in Gazprom’s intensifying push into the Asia-Pacific region through its increasingly pivotal position in Singapore.
“Gazprom’s first listing in Asia enables us to broaden our global shareholder base in one of the world’s most dynamic financial markets. Gazprom, which benefits from its unique and unrivalled reserve base, geographical scope and transmission infrastructure to be the secure and reliable energy supplier of choice in Europe and Asia, will build on this extended shareholder base to further cement its position as a truly global company,” he said.
Meanwhile, in Ukraine, the government is increasingly worried about its escalating conflict with Russia and the loss of natural gas supplies from Gazprom from Monday, June 16.
According to Platts, protracted talks between Gazprom and Ukraine’s Naftogaz failed to reach an agreement. Monday 10 pm Moscow time, the Russian company switched terms to its sale of natural gas to Ukraine’s Naftogaz making it mandatory pre-payment.
“This makes the delivery of all natural gas to Ukraine conditional to prepayment. Not only is Ukraine a buyer of Russian natural gas, it is also a key transit country for deliveries of at least one third of all Russian gas to European buyers,” said Platts.
Gazprom will focus its attention to marketing liquefied natural gas (LNG) from Russia’s Yamal-Nenets Autonomous Region to India and other parts of Asia through its Singapore subsidiary.
Novatek, Russia’s largest independent gas producer, has signed an agreement to supply Gazprom Marketing & Trading Singapore up to three million tons of LNG per year from 2017 for at least 20 years.
Novatek, which is leading a consortium to develop the Yamal reserves in northwestern Siberia, said the LNG will be priced against crude oil on a free-on-board (FOB) basis at a transshipment point in Western Europe for delivery to the Asian-Pacific region, primarily to India.