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Energise Issue 8
Energise Issue 8
Energise
E
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Energise
Welcome to issue 8 of your quarterly news
round-up from Gazprom Marketing & Trading
IN THIS ISSUE
COOKING ON GAS
Driving energy efficiency at Nandos.
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Alexander Kim
Executive Director
of Finance, GM&T
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4 issue 8 AUGUST 2014
What are your own aspirations for GM&T and its people?
Some people only ever look for short-term benefits, but that approach doesnt
necessarily make your life happier; theres no fulfilment in that. In pursuit of GM&Ts
longer-term goals, its important that we nurture a comfortable atmosphere,
common culture and genuine team spirit after all, we spend a lot of time at work.
W
True North gives us a
tangible goal to unite
around. If were able to
develop this kind of spirit in
GM&T and everyone agrees
that we have the same
goal, we will become very
effective there wont be
any barriers to success.
Alexander Kim on
Family My daughters are 22 and 5: the eldest
is studying fashion here in London.
Recreation I like table tennis and volleyball
and Im thinking of taking up golf.
London Its one of the greatest cities in the
world both in terms of business and culture.
Much ado about nothing: Christos Vasilakos Konstantinidis discusses European energy policy continued
Policy
Summary
Intended Effect
2030 Targets
Re-establish EU ETS
as the main tool for
GHG emissions
reductions to 2030
EU ETS
Structural
Changes
Reduce emissions
allowances
oversupply so as
to create robust
carbon prices
Update
Environmental
and Energy
State Aid
Guidelines
R
ES to be integrated in the market
and subsidies allocated through
auctions by 2017
H
igh level design criteria for
capacity mechanism
Prevent market
distortions through
un-coordinated
national energy
policies
One might argue that the policy initiatives would rectify the aforementioned issues.
However, our initial analysis suggests otherwise. The 2030 targets still include prescriptive
RES targets (although it is unclear how this will be achieved on a pan-European level)
and most probably there will be binding energy efficiency targets, which will inevitably
prevent the efficient operation of the EU ETS market. Similarly, whereas the EU ETS
structural changes are expected to prop up carbon prices, it is highly questionable
whether these will reach the levels required to incentivise coal to gas fired generation
switching, which is the cheapest way to abate carbon emissions and being able to cope
with intermittent RES electricity generation.
Lastly, whereas the new EU State Aid guidelines are a step towards the right direction
to co-ordinate national energy policies they provide significant flexibility to member
states to follow their own paths. In summary, significant refinement of these new
policy initiatives will be required to change the course of the current EU energy policy.
Failing to do so will have dire consequences.
Although Europe is
on track to meet its
20/20/20 objectives...
there are strong signs
that European energy
policy is at risk of failing.
Christos Vasilakos Konstantinidis
Senior Advisor, Regulatory Affairs, GM&T
Sakhalin Energy has helped Russia become one of the key LNG players in the key Asia
Pacific market. About 4.5% of global LNG supply comes from Sakhalin Energys plant.
The company exports LNG to Japan, South Korea, China, India, Thailand and Taiwan,
with Japan and South Korea taking the bulk of the volume. Annually, almost 10% of
total Japanese LNG imports come from Sakhalin. Sakhalin-2 oil is mainly exported to
China, Japan and South Korea.
In 20 years of operation, Sakhalin Energy has produced and exported over 233 million
barrels of oil and over 51 million tons of LNG. In the same period, the company has
supplied Russia with 3.3 billion cubic metres of natural gas.
President Vladimir Putin and Prime Minister Dmitry Medvedev sent congratulatory
letters to Sakhalin Energy on its achievement. Alexander Medvedev, Deputy
Chairman of the Board of Executive Directors of Gazprom and Ben van Beurden,
Chief Executive Officer of Shell two shareholders of Sakhalin Energy spoke at the
anniversary ceremony, recognising Sakhalin Energys achievements and shared plans
for further development.
Roman Dashkov, Chief Executive Officer of Sakhalin Energy, said: We are proud to be
the first to achieve outstanding milestones in Russian and international history of oil
and gas export. We were the first to start operations under the Production Sharing
Agreement. We were the first to obtain the largest project financing in Russia of
USD6.7 billion. In 1999, we were the first to start oil exports from Molikpaq our
offshore asset; in 2006 we installed Lunskoye-A a gas export platform. In 2009,
we started shipping out liquefied natural gas to Asia Pacific.
Gazprom Marketing & Trading (GM&T) has a long-term sale and purchase agreement
(SPA) with Sakhalin Energy to receive 1MTPA of LNG over 20 years from 2008.
L-R: Andrey Okhotkin (Commercial Director, Sakhalin Energy Investment Company Ltd);
Frdric Barnaud (Executive Director for LNG & Shipping, GM&T); Roman Dashkov
(CEO, Sakhalin Energy Investment Company Ltd); Elena Burmistrova (Director General of
Gazprom Export LLC); Alexander Medvedev (Deputy Chairman of the Gazprom Management
Committee); Alexander Tislenko (advisor to Sakhalin Energy Investment Company Ltd CEO).
GM&T was represented by Frdric Barnaud, Executive Director for LNG & Shipping,
and Vladimir Kim, Commercial Manager, LNG Marketing, Asia. Mr Barnaud said:
We are very pleased with the performance and reliability of our first Russian plant.
We congratulate Sakhalin Energy on their success and partnership spirit.
At the official ceremony to mark Gazproms inclusion in the Singapore Exchanges listings.
Andrey Kruglov
Deputy Chairman of the Management Committee,
Head of the Department for Finance and Economics, OAO Gazprom
Mark expressed surprise at his win: The finalists included two students from
Cambridge University, one from Oxford University and one from the London School
of Economics. The standard was very high, so I was completely stunned to have won
this. Im very excited at the prospect of the internship. GM&T is an exciting company,
as its still quite young, but rapidly developing. Im hoping the internship may lead to
further opportunities.
Julie says: We face enough unpredictability in our business with fluctuations in the
commodity markets were exposed to like grain and potatoes, so certainty over our
energy spend is enormously helpful. The big challenge is that when you buy energy,
you get what you pay for in terms of the quality of service you receive, and its
important not to underestimate the cost associated with poor customer service.
I know from experience that every time you need to query an invoice or spend more
time than necessary resolving an issue, it ties up internal resources and costs money.
With 250 invoices coming in every month just for gas, this can become a significant
overhead. Theres therefore a balance to be struck between ensuring a good price
over the fixed term of the contract and having confidence that our lives wont be
made difficult by poor management on the suppliers side.
We selected Gazprom Energy following a competitive tender process. While they
werent the cheapest supplier, we chose them based on the levels of service they
offer, which we knew were excellent and the cost difference would be more than
justified in the reduction in internal resource needed with alternative suppliers.
>>>
Nandos energy efficiency drive is cooking on gas thanks to Gazprom Energys customer focus
continued
Nandos
Liverpool One
restaurant
Good customer service also includes having access to the information and technology
to allow consumption to be managed effectively.
Julie says: An energy suppliers role needs to be so much more than just selling gas
and electricity providing the service we need along with making consumption
information available is also critical. One of the big changes we made to control
energy usage levels across the business was to give each restaurant manager or
Patro as we call them financial responsibility for their consumption. The problem
was that we had asked our Patros to take responsibility for their energy budgets
without providing them with the tools to diagnose where they were using gas and
electricity unnecessarily.
Nandos worked with Gazprom Energy to install smart meter devices (data loggers)
that provide energy consumption for gas at half-hourly intervals. Managers were able
to view the consumption data graphs for their restaurant via the companys intranet.
Having this data has made the relationship between the working habits of staff and
daily energy consumption crystal clear, allowing each Patro to focus on the issues
that are a priority for their particular restaurant, says Julie.
At a company-wide level, the loggers provide the evidence we need to ensure that
bills are always accurate. In my experience, inaccurate, estimate-based billing is one
of the main reasons that businesses pay too much for their energy. Gazprom Energy
has worked closely with us to ensure excellent levels of billing accuracy, based on the
information provided by the data loggers.
A good energy account manager is like a good facilities manager: when theyre doing
their job well you should only need a minimal amount of contact with them. This is the
case with Gazprom Energy. We have a single point of contact with Gazprom Energy via
a dedicated account manager. He takes the time to ensure things are right first time,
taking a lot of pressure off my team.
An example of how the customer service delivered by Gazprom Energy paid dividends
came when a new restaurant was opened that shared premises with another
restaurant. The landlord offered Nandos the option of sharing a sub-supply with the
Chelsea Football Club has become synonymous with Gazprom recently continued
What now?
Were currently in the domestic off-season May-mid-August, traditionally a
difficult time to engage with fans. Its even harder this year with the World Cup on!
To combat this, we launched a GROW YOUR OWN PATCH campaign at the end
of May. Gazprom is giving Chelsea fans the chance to grow their own patch of
Stamford Bridge grass by giving away packets of exactly the same grass seed mix
used to turf the Stamford Bridge pitch.
To receive a packet of these grass seeds, Chelsea fans have to tweet a picture
of their gardens or outside space and tell us why they want them. So far weve
distributed 100 packets with more to follow. You can get your hands on a packet
by following @GazpromChelsea and using the hashtag #MyGazpromCFCPatch
Our partnership with Chelsea in 2013/14 has been a great success and sets a high
benchmark for next season.
You can keep up to date with all of our activity by following us on Twitter,
@GazpromChelsea, or Liking us on Facebook Gazprom Chelsea.
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ventes@gazprom-energy.com
Tel: +33 (0) 1 42 99 73 92
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T: +1 (281) 404 4500
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