The Gazprom Headquarters keeps hosting the Board of Directors' meeting.

The Board of Directors took notice of the information on the measures for enhancing Gazprom's gas transmission system reliability.

The Management Committee was charged to organize work aimed at maintaining the reliable operation of the gas transmission system in 2009–2010 under the global financial crisis.

The Management Committee was entrusted to prepare in 2010 the Program for comprehensive overhauling of the linear part of Gazprom's gas trunklines for the period from 2011 to 2015 and the Comprehensive Program for the reconstruction and technical re-equipment of gas transmission facilities and UGS compressor stations for the period from 2011 to 2015. The Management Committee was also charged to streamline the System of control over the technical condition and integrity of the linear part of gas trunklines.

Background:

Maintaining the reliable operation of the gas transmission system (GTS) is among the Company's top priorities.

Gazprom's GTS comprises some 160 thousand kilometers of gas trunklines and branch pipelines, 280 compressor stations, over 4 thousand gas pumping units, 25 underground gas storage facilities.

Owing to the centralized management, branched structure and parallel transmission routes, the GTS has a significant margin of safety and it is capable of ensuring failsafe gas supplies even during the peak consumption periods. However, a significant number of gas transmission facilities were constructed in the 1970s and 1980s. Therefore, Gazprom is taking a series of efforts aimed at increasing the operational security of the GTS.

Timely diagnostics, overhauls and re-insulation of the linear part of gas trunklines in 2003 through to 2008 resulted in a 30 per cent drop in the breakdown rate. The number of pipeline sections operated below the planned pressure level reduced three-fold. The length of overhauled pipelines increased from 1,356 kilometers in 2003 to 2,756 kilometers in 2008. In addition, Gazprom annually accomplishes 16 to 18 scheduled maintenance packages at the GTS facilities.

Reconstruction of the GTS carried out from 2003 to 2008 increased the system capacity by 5.3 billion cubic meters.

Currently, the Comprehensive Program for the reconstruction and technical re-equipment of gas transmission facilities and UGS compressor stations for the period from 2007 to 2010 is underway. The Program provides for the modernization and replacement of over 500 gas pumping units, reconstruction of some 5 thousand kilometers of gas pipelines and some 300 gas distribution stations. This will increase the GTS throughput by 32 billion cubic meters and reduce transmission losses by 3.5 billion cubic meters of gas per year.

For the purpose of increasing reliability, safety and efficiency of the GTS facilities operation, the Company is actively working to establish the System of control over the technical condition and integrity of the linear part of gas trunklines.

The System will be primarily aimed at enhancing the effectiveness, flexibility and relevance of the decision making process concerning the GTS management including the diagnostics, maintenance and repair planning for the linear part of gas trunklines, as well as outsourced financial, material & technical and human resources optimization.