Alexander Ananenkov, Deputy Chairman of Gazprom Management Committee held a meeting at the Gazprom Headquarters with regard to optimizing and developing the underground gas storage (UGS) system under the conditions of reduced gas consumption.

Taking part in the meeting were Oleg Aksyutin, Member of the Management Committee – Head of the Gas Transportation, Underground Storage and Utilization Department, heads and specialists from Gazprom Administration specialized subdivisions and Gazprom UGS, Gazprom export, Gazprom tsentrremont, Gazprom komplektatsiya, Gazprom VNIIGAZ, Podzemgazprom, Podzemburgaz.

In his opening speech Alexander Ananenkov underlined that amidst the global economic crisis the operating reliability of UGS facilities as an integral part of the Unified Gas Supply System should remain at a high level, with a focus to be still placed on the production capacity buildup for raising the daily UGS deliverability.

The meeting participants addressed UGS operating highlights during the autumn/winter period of 2008–2009. The meeting discussed the top-priority activities relevant to capital construction, repair and reconstruction of UGS facilities for the current year as well as the prospects for UGS capacities development abroad.

Based on the meeting results Gazprom’s specialized subdivisions and its subsidiaries were entrusted with the tasks aimed at UGS optimization and development in order to ensure the reliable and uninterrupted operation of the Unified Gas Supply System.

Background

There are currently 25 Underground Gas Storage (UGS) facilities operational in the Russian Federation with the commercial gas volume of 64 billion cubic meters. The maximum daily deliverability of UGS facilities by the withdrawal season start-up accounts for 620 million cubic meters, the daily average deliverability of UGS capacities between December and February – 500 million cubic meters.

In addition, Gazprom stores gas in UGS facilities in Latvia, Germany, Austria and the UK.

Gazprom holds shares in companies owning and operating UGS facilities, namely, ArmRosGazprom (Armenia), AO Latvijas Gaze (Latvia), WINGAS GmbH (Germany) and VNG AG (Germany).

The UGS Development Strategy up to 2030 hinges on the following basic principles:

- maintaining the achieved level of Russian UGS capacities by upgrading and replacing aged and obsolete capacities;

- promptly building up Russia’s UGS daily deliverability by expanding existing and building new UGS facilities;

- providing UGS capacities for “deficit” regions of the Russian Federation;

- developing at best the UGS system along with the UGSS, synchronizing UGS facility and gas trunkline operation regimes;

- expanding UGS network abroad to store Gazprom’s gas for higher reliability and flexibility of gas exports and bigger presence in the spot market.