The Gazprom Management Committee reviewed subsidiary performance over the autumn/winter 2007-2008 season.

As it was emphasized, during the reporting period Gazprom’s subsidiaries had provided sustainable gas deliveries to Russian consumers and abroad.

During the autumn/winter 2007-2008 (October-March) season Gazprom produced 297.9 bcm of gas, which is a 4.9 bcm increase as compared to the respective period in 2006-2007.

Gas withdrawal from Russia’s UGS facilities during the past autumn/winter season made up 50.05 bcm exceeding the planned task by 4.4 bcm, while a daily maximum gas withdrawal was gained in January (583.6 mcm).

To ensure reliable and uninterrupted operation of the Unified Gas Supply System within the autumn/winter 2008-2009 season the Gazprom Management Committee tasked the Company’s core business units with:

• developing the Major Guidelines on Gazprom’s subsidiary infrastructure preparation for operation during the autumn/winter 2008-2009 season;
• providing:

- scheduled preventive maintenance and repair works at the UGS facilities

- stockpiling at least 64 bcm of commercial gas reserves at Russia’s UGS facilities by the next autumn/winter season start-up

- increase of UGS maximum daily send-out capacity to 620 mcm

- increase of UGS daily average send-out capacity in December/February to 500 mcm (to 492.35 mcm in the 2007-2008 autumn/winter season).

Gazprom’s subsidiaries were entrusted with:

• fulfilling diagnostics, overhaul and reconstruction plans and programs for gas production, transmission, underground storage and processing facilities in 2008;
• timely implementing the Major Guidelines on Gazprom’s subsidiary infrastructure preparation for operation during the autumn/winter 2008-2009 season;
• preparation of transportation vehicles and specialized equipment for operation during the autumn/winter 2008-2009 season.

Reference:

The existing gas production rates have been achieved largely due to commissioning of a gas pre-treatment plant UPPG-10 in the Kharvutinskaya area of the Yamburgskoye field, a comprehensive gas treatment plant (UKPG) at the Yuzhno-Russkoye oil and gas condensate field, phase 2 of a booster compressor station on the Yubileynoye oil and gas condensate field as well as the increase in gas production from the Zapolyarnoye and Pestsovoye fields. In the area of gas production facilities an overhaul of 598 wells was completed in 2007.

In 2007 Gazprom completed 16 scheduled preventive maintenance and repair actions at gas transmission facilities. Versus 2006, the number of gas pipeline accidents was reduced by 11.2 per cent with in-line inspection plan and submerged crossings examination overfulfilled. 17.2 thousand km of gas pipelines have been examined and 2 697 km –overhauled.

The increase in potential maximum daily send-out capacity of UGS facilities has been achieved by the season start-up –from 600 to 608 mcm. The increase was achieved through the execution of maintenance and repair actions as well as the commissioning of new capacities including 0.5 bcm of UGS active capacity, hook-up of 30 wells and gas compressing capacities.

For 2008 the Company envisages the expansion of the Yuzhno-Russkoye field UKPG, commissioning of the UKPG-22, the second block of the Achimov deposits of the Urengoyskoye oil and gas condensate field, 4 booster compressor stations with a total capacity of 208 MW, 100 production gas wells, 1 268 km of gas mains and pipeline branches, 9 compressor stations with a total capacity of 734 MW at pipelines and UGS facilities, hook-up of 11 wells at UGS facilities.

As of January 1, 2008, 310.73 km of the linear part of the first line of the gas pipeline providing gas delivery via the Nord Stream pipeline was launched. In the third quarter of this year Gazprom envisages additional commissioning of more 165.28 km of the gas pipeline.