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GAZPROM

May 6, 2008

On meeting dedicated to Russia’s UGSS reliability enhancement

Today Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee conducted in Yekaterinburg a meeting dedicated to further enhancement of Russia’s Unified Gas Supply System (UGSS) reliability.

Attending the meeting were heads and specialists Gazprom’s core business units; General Directors of the Company’s gas transmission subsidiaries as well as other affiliates – VNIIGAZ, Gaznadzor, Gazpromstroyengineering, Orgenergogaz, Centrenergogaz, YamalGasInvest, Gazpromenergodiagnostika, NPC Molniya, Promgazengineering and NPO Spetsneftegaz.

Alexander Ananenkov opened the meeting with a speech about further development of Russia’s UGSS. He noted that Russia had the world’s largest gas transmission system (GTS) capable of securing uninterrupted gas supply even during seasonal peak loads. At the same time, Gazprom is continuously engaged in improving UGSS in accordance with the gas industry development strategy. This work is first of all aimed at further providing reliable gas supply to consumers as well as is connected with growing gas demand both in Russia and abroad.

The speaker informed of the prominent gas transmission projects currently implemented by Gazprom. These are the Nord Stream, SRTO – Torzhok gas pipeline, Urengoy gas transit hub enlargement, northwestern Russia’s gas transit system enlargement, including for gas deliveries via the Nord Stream gas pipeline. In addition to these projects Gazprom implements reconstruction and technical re-equipment programs for gas transmission facilities, including the Comprehensive Program for the reconstruction and technical re-equipment of gas transmission facilities for 2007 to 2010.

Alexander Ananenkov placed a special focus on the most crucial promising gas transmission projects. He noted that the South Stream, Altai and Yakutia – Khabarovsk – Vladivostok pipelines construction would help the Company to diversify its gas export routes.

The speaker also stressed that the formation of new gas production regions on the Yamal Peninsula, in Eastern Siberia and the Far East would require building large gas transmission systems. So, by 2030 over 300 bcm of gas transmission capacity is needed to be annually built in view of Yamal’s gas resource exploitation. “The creation of a new Yamal gas transmission corridor will secure gas deliveries from the Yamal Peninsula and enhance Russia’s UGSS reliability,” said Alexander Ananenkov.

The Deputy Chairman of Gazprom’s Management Committee notified of the gasification and gas supply prospects for eastern Russia. Emphasis was put on the Sakhalin – Khabarovsk – Vladivostok GTS construction project intended for delivering gas to most of the customers in the Khabarovsk and Primorie Krais, Jewish Autonomous Oblast and Sakhalin Oblast. Besides, the speaker addressed the construction of a gas pipeline between the Sobolevsky district and Petropavlovsk-Kamchatsky for the Kamchatka Krai gasification purposes.

In conclusion, the speaker underscored that the gas production level planned up to 2010 would be achieved via the existing and newly commissioned fields in the Nadym-Pur-Taz region. “In this regard, between 2008 and 2009 Gazprom transgaz Yugorsk and Gazprom transgaz Surgut are to maximally overhaul the gas pipelines carrying gas from the region and to get them ready for operation for 2010 through 2011,” said Alexander Ananenkov.

Based on the meeting outcomes the decisions were made to improve Gazprom and its gas transmission companies’ activities targeted at maintaining and increasing the reliability of Russia’s UGSS. The participants pointed amongst other things to the need of enhancing the gas pipeline inspection efficiency, boosting the annual scope of their re-isolation as well as interacting with national machine and pipe building companies so as to improve the specifications of the products manufactured for Gazprom’s needs.

Reference:

The Gazprom Management Committee approved theComprehensive Program for the reconstruction and technical re-equipment of gas transmission facilities and UGS compressor stations for 2007 to 2010 in September 2006. The document underlies the build-up of Gazprom’s annual and mid-term investment related to the reconstruction and technical upgrade of gas transmission facilities.

The main aims of the Program are enhancing the GTS efficiency and reliability and improving the industrial and ecological safety of its facilities. The Program implementation will embrace upgrading or replacing more than 500 gas compressor units, reconstructing about 5,000 km of gas pipelines and about 300 gas distribution stations. This will enable to increase the annual capacity of gas mains by 32 bcm and simultaneously save about 3.5 bcm/yr during transmission. Between 2007 and 2010 the total length of pipelines with decreased operating pressure is planned to reduce almost threefold.

In 2007 Gazprom spent about RUR 36.3 bln on the GTS reconstruction and technical re-equipment. As a result, the annual GTS capacity increased by 1.24 mcm, fuel gas saving during transportation accounted for 276.1 mcm, NO2 emissions reduced by 0.9 kt and CO2 –by 508 kt.

Comprehensive repair of compressor station facilities is one of the crucial activities aimed at maintaining and enhancing the GTS reliability. To solve this task, Gazprom implements the Program for the comprehensive repair of compressor station piping, with 469 km to be comprehensively repaired from 2007 to 2012.

 

 

 

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