Gazprom was much criticized not investing enough

Alexander Medvedev, the number two of Gazprom, came to Paris to launch the French subsidiary of Russian gas. He explains "echos" its major ambitions on the Montreal market.

You have inaugurated Friday the offices of your French subsidiary, Gazprom Marketing & Trading France. That is what this represents for your group

This solemn inauguration, it is a symbol. He said and written so many negative things on Gazprom lately! We said for a long time that our strategy we would work on all levels of the gas chain, and increasingly more often outside of Russia. The time has come to show that we are one company like others, let us know. This French representation will help us. But be careful: this is not a tourist office! We are here to do business...

What are your ambitions on the French market

We have developed with gas of France solid relationships, dating back more than thirty years, and we are convinced that they will still continue for many years. But, outside of SFM, we now have the opportunity to develop by ourselves, because of the opening of the gas market to competition, which will be total in July 2007. As everywhere in Europe, this liberalisation process allows us to send us directly to final consumers, be they commercial or industrial. This is already the case today, since Gazprom Marketing & Trading France has already entered into agreements with a handful of industrial customers. In addition, we have begun to discuss with EDF and Total, which provide them also the French consumers gas and with which we could soon sign supply contracts.

Specifically, what are your goals in terms of volumes and clients

In terms of volumes, our goal is to provide online, in the next two to three years, 2 billion cubic metres of gas on the French ground. As a comparison, we sold year spent 4 billion cubic meters of gas to the United Kingdom, where our subsidiary supplies more than 1,000 clients. Essentially small industrial firms. If our teams come to conquer as many clients in France in five years, we will consider this as a success. Two of which I am not, it is customers next year!

You feel not, therefore, to compete head-on with gas of France, which you are also a preferred supplier. How you concilierez these two caps

Things are not frozen. The appearance of Gazprom on the French market seems quite natural. After all, what type of player is able to intervene in this sector Either a group like ours, which has its own gas resources, or companies as a gas of France, including the bulk of the portfolio consists of long term supply. Now, thanks to the opening of markets, Gazprom is not only able to deliver its gas to the French border, but also to acquire capacity to transport up to the door of the consumer. Why we would be in depriving us This does not mean that we will stop to honour our obligations to SFM. Proof: we will even extend until 2035 the supply contract that binds us, for volume 12 billion cubic metres per year...

Want out of the France, in which countries Gazprom to develop

We are sort of the pioneers of the opening of the markets in Europe, since, as early as 1992, we have created in Germany the Wingas company, that we codétenons with Wintershall and today serves 15 of the German market. This experience, we mean well sit down our presence in the neighbouring countries, such as the Austria and the countries of Central Europe, but also in Italy, as shown in the strategic agreement that we sign with ENI. I have already referred to our British subsidiary. After favoured its development on the local gas market, our intention is to open its portfolio to other activities, such as electricity and CO2 trading.

To speed your development, are acquisitions in the study

To cut short the latest rumours in date, I specify first that we negotiate with Centrica or RWE. That being said, we exclude no option. The development of Gazprom will be by internal growth, by creating a joint ventures and, if the opportunity presents itself, by buying assets for sale. In this case, our priority of the moment is to give us additional storage capacity in Europe. This is the case in Austria, where we are building new underground infrastructure, which will cost us EUR 350 million. Storage projects are also underway in Belgium, the Netherlands, the United Kingdom, and we hope sooner or later give us assets of this type on French soil.

Gazprom was much criticized not investing enough. That answer you this

I answer that, in total, our investments rise this year to 10 billion euros and that half of this envelope is devoted to the development of our infrastructure of transport or storage, as in Russia overseas. And I can tell you that this effort will be increased over the next years. With such projects, which can still accuse Gazprom to cut off gas to European consumers