On 24 January in Davos, the Ukrainian Minister of Energy, Eduard Stavitsky, and the director of the Dutch-British company Shell, Peter Vozer, signed a 50-year Production Sharing Agreement (PSA) concerning a project for the production of shale gas from the Yuzivska field (in the Kharkiv and Donetsk regions).
On 26 January the Financial Times, citing a source in the Ukrainian government, reported that Gazprom had issued a bill for US$7 billion to Naftohaz for the purchase in 2012 of a smaller amount of gas than that agreed in their 2009 contract, due to a ‘take or pay’ clause. The same day, a Naftohaz spokesman confirmed the British newspaper’s report.
On 15 January, Slovakia’s state-owned nuclear company JAVYS and the Czech state-owned energy corporation CEZ signed a memorandum with Russia’s Rosatom, which envisages Rosatom being granted access to complete documentation concerning the construction of two new reactors at the nuclear power plant in Jaslovske Bohunice in Slovakia.
On 14 January, Prime Minister Petr Necas opened the Gazelle gas pipeline at the Czech-German border in the presence of representatives from Germany and Russia. Gazelle is the extension of Nord Stream’s branch running through the Czech Republic.
On 10 January, Gazprom and Novatek OAO (the largest independent gas producer in Russia) signed an agreement to form a joint venture to produce liquefied natural gas (LNG) on the Yamal Peninsula. The agreement is further evidence of Russia's growing interest in LNG production, which has been observed in recent years. It forms part of Russia's declared strategy of diversifying the markets for its domestic gas.
On 25 December, one year ahead of schedule, President Vladimir Putin officially opened the second section of the East Siberia-Pacific Ocean (ESPO-2) oil pipeline running from Skovorodino (Amur Oblast) to the Kozmino sea terminal (Primorsky Krai). The construction of ESPO-2, which is 2,046 km long and has an annual capacity of 35 million tonnes, has cost a total of US$10.6 billion. At the same time, the capacity of the Tayshet–Skovorodino section has been increased to 50 million tonnes.
Gazprom is determined to continue its efforts to build the South Stream gas pipeline regardless of the slump on the European gas market and the fact that there is sufficient capacity already in the existing transport infrastructure. The official inauguration of the maritime section of South Stream was held on 7 December this year, but the construction itself will commence in 2014.
On November 15, the Bulgarian state-owned gas distributor Bulgargaz signed a ten-year contract with Russian Gazprom regarding the annual purchase of 2.9 billion m3 of gas. The contract will come into force at the beginning of 2013. Details of the deal are subject to commercial confidentiality but Bulgaria’s Prime Minister Boyko Borisov announced that they include a 20% decrease in gas prices and the withdrawal from existing services provided by the two intermediaries: Russian-Bulgarian Overgas (ownership: 50% Gazprom, 50% Overgas Holding) and Russian-German WIEE (ownership: 50% Gazprom, 50% Wintershall).
On 30 October, Gazprom’s Board of Directors approved a change in the investment programme for this year. The company plans to increase its capital expenditure for investment to around $31 billion (a rise of about 25% compared with the original programme approved in December 2011). The document foresees that most of this amount (over $27 billion) will be allocated to production, specifically extraction projects and the construction of gas pipelines.