Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company’s group of experts took a business trip to the Volga and Northwestern regions of the Russian Federation.

Gazprom’s experts visited a number of gas transmission facilities under construction: the Lukoyanovskaya and Ivanovskaya compressor stations (Nizhny Novgorod Oblast) and the Portovaya compressor station (Leningrad Oblast), as well as made an inspection flight along the Gryazovets – Vyborg gas pipeline route.

Based on the visit results, a meeting was held today in Saint Petersburg by Alexander Ananenkov relevant to increasing the throughput of gas transmission capacities in the Northwestern region.

Taking part in the meeting were Members of the Gazprom Management Committee – Yaroslav Golko, Head of the Investment and Construction Department; Igor Fyodorov, Director General of Gazprom komplektatsiya; as well as heads and experts from Gazprom’s specialized subdivisions and subsidiaries: Gazprom invest Zapad, Yamalgazinvest, Gazprom transgaz Nizhny Novgorod, Gazprom transgaz Saint Petersburg, Giprogaztsentr and Giprospetsgaz.

In his welcome speech Alexander Ananenkov underlined that assurance of reliable gas supplies was among the Company’s major tasks. In this regard, Gazprom carries out a great scope of work on developing Russia’s Unified Gas Supply System (UGSS) and diversifying gas export routes in a synchronized manner with the gas production capacities buildup.

In particular, the work is being done to expand the Gryazovets gas transmission hub, which is a crucial component of the Northern gas transmission corridor. The hub will become more significant due to the need to accept gas from Yamal’s fields and to raise the reliability of gas supplies to the consumers of the Northwestern region. In addition, the Gryazovets hub will feed the Nord Stream offshore gas pipeline starting from September 2011.

The meeting addressed the progress in engineering and constructing the Bovanenkovo – Ukhta, Ukhta – Torzhok, SRTO – Torzhok, Pochinki – Gryazovets and Gryazovets – Vyborg gas pipelines.

A decision was taken to speed up the Ivanovskaya compressor station construction and move the completion deadline from the fourth to the second quarter of 2011. The station will be put onstream simultaneously with the Lukoyanovskaya compressor station. Commissioning of the linear part of the Pochinki – Gryazovets gas pipeline, which involves the above mentioned compressor stations, was also rescheduled for the same timeframe. This is a necessary prerequisite for raising the reliability of gas supply to the Nord Stream offshore gas pipeline within the prescribed deadlines.

Following the meeting results, the Company’s specialized subdivisions and subsidiaries were engaged with the tasks aimed at timely execution of the projects for developing the UGSS gas transmission capacities in the Volga and Northwestern regions.

Background:

At the moment, the Gryazovets gas transmission hub conveys gas from the Nadym-Pur-Taz region (Western Siberia) to Northwestern Russia, as well as into the Yamal – Europe gas pipeline. The Gryazovetskaya compressor station is the key facility of the Gryazovets hub. The work is underway to increase the station’s capacity from 264 to 389  MW.

The Pochinki – Gryazovets gas pipeline construction is oriented at raising the UGSS reliability and flexibility in the Northwestern and Central regions. Initially, the pipeline will secure additional gas supplies to the Northwestern region, and, inter alia, convey gas to the Nord Stream gas pipeline. Further on, when natural gas deliveries from Yamal are started, the gas pipeline will be switched to reverse flow and gas will be rerouted to the Central region.

The Pochinki – Gryazovets gas pipeline will run across the Nizhny Novgorod, Vladimir, Ivanovo, Yaroslavl and Vologda Oblasts. The 1,420-millimeter pipeline will stretch approximately 650 kilometers and operate at the pressure of 7.4 MPa. Its full throughput will amount to  36 billion cubic meters per annum. The gas pipeline will embrace 6  compressor stations with the total capacity of 580 MW to be put onstream as  necessary. The pipeline construction was launched in September 2007. Over 140  kilometers have been laid so far.

The Gryazovets – Vyborg gas trunkline is intended for securing gas deliveries to the Nord Stream gas pipeline and supplying consumers of Russia’s Northwestern region.

The 917-kilometer gas pipeline covers the Leningrad and Vologda Oblasts. By now, 597 kilometers of the gas pipeline have been put onstream. The linear part is planned to be completed in late 2010. Between 2010  and 2011 compressor shops at the Gryazovetskaya, Babaevskaya, Volkhovskaya, Elizavetinskaya and Portovaya compressor stations will be constructed and brought onstream.

The gas pipeline will be commissioned in a stagewise manner starting from 2011. It is to achieve the projected capacity (55 billion cubic meters per annum) by late 2012.

Projected to be a unique gas transmission facility, the Portovaya compressor station with the capacity of 366 MW is located at the Russian coast of the Baltic Sea in the Portovaya Bay. Advanced equipment and modern technologies will be used for construction.

To secure transmission of the Yamal gas until 2030, it is projected to create a unique new-generation gas transmission system unparalleled in Russia. The Yamal gas will be conveyed along some 1,100-kilometer Yamal – Ukhta route (5 to 6 strings) and further on along the Ukhta – Gryazovets, Gryazovets – Torzhok, Gryazovets – Yaroslavl and Ukhta – Pochinki pipelines.

The length of the Ukhta – Torzhok gas trunkline system is projected to reach 1,300 kilometers, the annual throughput capacity – 90 billion cubic meters, the working pressure – 100 Ata.

The work is underway to expand the Urengoy gas transmission hub and to construct the Northern Tyumen Regions (SRTO) – Torzhok gas trunkline for the purpose of withdrawing additional gas volumes from the Nadym-Pur-Taz region.

Starting from 1995, Gazprom has been constructing a gas pipeline from the Urengoy field located in Western Siberia to the town of Torzhok, one of the key nodes of Russia’s UGSS. The gas pipeline will become an important element of the multi-string Urengoy – Nadym – Peregrebnoye – Ukhta – Torzhok gas transmission system being in  operation. It will enable to boost capacities for gas supply to consumers of  Russia’s Northwestern region and will secure gas exports via the Yamal – Europe gas pipeline.

The gas pipeline length is 2,200 kilometers; its design capacity varies from 20.5 to 28.5 billion cubic meters at  different sections. The pipeline’s completion is slated for 2011.