It was established as a joint stock company in 1993, and is partly owned by the Russian state (51%). Core activities include gas exploration, production, transportation, processing, and marketing.

Gazprom controls almost 60 per cent of the Russian gas reserves and produces about 90 per cent of all Russian natural gas. The company is responsible for eight per cent of Russia’s GDP. Gazprom provides about 20 per cent of earnings to the federal budget and supplies gas to generate around 50 per cent of the electricity in Russia.

Gazprom is a leader in the construction and operation of pipelines. It controls a 156,000 kilometre-long pipeline network, which transports roughly 650 bcm of natural gas per annum.

One of its most challenging and successful projects was the construction of the Blue Stream subsea pipeline in the Black Sea between 2001 and 2005 under difficult conditions. The 24 inch double line pipeline with a length of 386 kilometres was built in partnership with Eni-Snam. It is laid at depths of up to 2,150 metres and is the world’s deepest pipeline. Its design capacity is 16 bcm per annum.

Nord Stream is one of Gazprom’s major gas export pipeline projects. Gazprom has concentrated its best available resources on implementing this important project.