Gas infrastructure expansion

Interaction with regions

Increasing the gas penetration rate across Russian regions is one of Gazprom’s most extensive and socially significant activities in the domestic market.

In 2018, Gazprom implements regional gas infrastructure expansion programs together with the authorities of 66 constituent entities of the Russian Federation. The Company finances the construction of inter-settlement gas pipelines, thereby providing localities with gas, while regional authorities lay down gas distribution networks and prepare consumers to receive gas.

Investments

Between 2005 and 2017, Gazprom allocated a total of RUB 324.65 billion to expand the gas grid coverage in Russian regions.

Gazprom’s funding for gas infrastructure expansion programs, RUB billion
Gazprom’s funding for gas infrastructure expansion programs, RUB billion

Gazprom’s funding for gas infrastructure expansion programs, RUB billion

From 2005 to 2017, over 2,000 gas pipelines with a total length of more than 30,000 kilometers were built. As a result, the gas penetration rate in Russia reached 68.1 per cent (71.4 per cent in cities and towns and 58.7 per cent in rural areas) by December 31, 2017.

Gas penetration rate across Russia, per cent
Gas penetration rate across Russia, per cent

Gas penetration rate across Russia, per cent

In 2017, just as in previous years, Gazprom fulfilled all of its obligations by constructing 121 gas pipelines stretching for 1,848 kilometers in 32 constituent entities of the Russian Federation.

Inter-settlement gas pipeline under construction
Inter-settlement gas pipeline under construction

Inter-settlement gas pipeline under construction

Gas infrastructure expansion in eastern Russia

One of the priorities of the state-run Eastern Gas Program coordinated by Gazprom is to provide gas supplies to consumers in Eastern Siberia and the Russian Far East.

The Company makes extensive efforts to develop the existing gas production centers, establish new ones, and build gas transmission capacities. These strategic projects form the basis for the implementation of gas infrastructure expansion projects in Far Eastern regions.

Thanks to Gazprom’s efforts, major power generating facilities were converted to gas in a number of large cities, including in Kamchatka, Sakhalin, and the Primorye Territory. Construction is currently underway on inter-settlement gas pipelines and gas distribution stations in the Kamchatka, Primorye and Khabarovsk Territories and the Sakhalin Region. In a medium-term perspective, natural gas will reach southern Yakutia, the Amur Region, and the central areas of Sakhalin Island.

Off-grid gas supply

The concept behind Gazprom’s participation in gas infrastructure expansion across Russian regions implies a differentiated approach, depending on the size of local gas reserves, the level of their development, and the possibility of using alternative energy, including liquefied and compressed natural gas (LNG and CNG) and liquefied petroleum gas (LPG).

Special attention is given to delivering gas to small localities and population centers remote from gas trunklines, which is particularly important in rural areas.

In 2014, Gazprom implemented its first off-grid gas supply project: the Company built an LNG complex in the Perm Territory consisting of an LNG mini-plant in the Kanyusyata village (Karagaisky District) and three natural gas receiving, storage and regasification facilities. The complex has the annual capacity of 19 million cubic meters of gas.

LNG complex in Perm Territory
LNG complex in Perm Territory

LNG complex in Perm Territory

Gas infrastructure expansion outside Russia

Gazprom is directly involved in the development of gas distribution systems of Armenia and Kyrgyzstan through its subsidiaries, namely Gazprom Armenia and Gazprom Kyrgyzstan.

Gas penetration rate in Armenia reaches 96 per cent

Gas penetration rate in Armenia reaches 96 per cent

Gazprom Armenia is a leader in Armenia’s energy industry. Natural gas is supplied to 600 Armenian population centers, with the gas penetration rate across the country reaching 96 per cent.

It is planned to provide gas to 411 localities and 845,000 apartments as part of the Program for gas supply and gas infrastructure expansion in Kyrgyzstan until 2030, raising the gas penetration rate in the Kyrgyz Republic from 22 to 60 per cent.