The Research Institute for Natural Gases and Gas Technologies (VNIIGAZ) today hosted the opening of the 2nd International Conference “UGS: Sustainability and Efficiency” (UGS-2008). Taking part in the Conference is a Gazprom delegation headed by Bogdan Budzulyak, Member of the Company’s Management Committee, Head of the Gas Transportation, Underground Storage and Utilization Department.

Bogdan Budzulyak noted in his speech that the development strategy of Gazprom as a global energy company envisaged reliable and uninterrupted gas deliveries to Russian and foreign customers even during peak seasonal loading of the Unified Gas Supply System of Russia.

In order to ensure reliable gas supply under the conditions of growing demand, Gazprom is active in exploring new production regions, implementing large-scale gas transmission projects and upgrading the UGSS.

Particular attention was paid to a crucial element of the UGSS operational reliability – underground gas storage (UGS) facilities. “The current level of the UGS system development enables to daily withdraw up to 620 mcm of gas during peak loads, which is commensurate with the maximum amount of gas pumped for export purposes,” said B. Budzulyak.

Speaking about the outlook for UGS, the speaker emphasized that as part of the 2005-2010 Action Program for Underground Gas Storage Gazprom was planning to take into operation about 16 bcm of active capacity, 15 compressor shops with a total capacity of more than 530 MW and hook up more than 300 UGS wells.

Furthermore, work is currently underway on issues surrounding the construction of UGS facilities, including helium storage facilities, in East Siberia and the Far East as an integral part of an integrated gas production, transmission and supply system being created in the region.

The Conference will last for three days through May 23.

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There are currently 25 underground gas storage (UGS) facilities operational in the Russian Federation with the commercial gas volume of 63.5 bcm.

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

OAO Gazprom holds shares in companies owning and operating UGS facilities, namely ZAO 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 withdrawal capacity 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 the UGS network abroad to store Gazprom’s gas for higher reliability and flexibility of gas exports and bigger presence in the spot market.

The “UGS: Sustainability and Efficiency” Conference is being attended by representatives of Gazprom and subsidiaries, eminent Russian and foreign companies and research institutes.

Alexander Ananenkov, Chairman of the Conference Organizing Committee, Deputy Chairman of Gazprom's Management Committee sent a welcome letter to the Conference participants.

The Conference will host sessions of the following Study Groups: “UGS Development Strategy. New Projects. New Regions. New UGS Technologies”, “Modern UGS Technologies”, “New Technologies for Higher Well Deliverability and Reliability”. At these sessions scientists and specialists will present results of their research findings.

Founded in 1948, VNIIGAZ is the major Research & Development, Technology & Engineering Center of Gazprom involved in the resource base development, gas and condensate production, transmission and processing as well as in the gas industry environmental and industrial safety promotion.

In 2001 the Institute obtained the status of a research center. At present, VNIIGAZ employs over 1,500 highly qualified specialists (including 55 Doctors of Sciences and 255 Candidates of Sciences), houses the only Post-Graduate Studies School in the gas industry and has two Dissertation Councils under the Russian Federation Education Ministry’s Higher Certification Commission.