Interaction with regions
Gasification of Russian regions is one of Gazprom’s most extensive and socially significant activities in the domestic market.
Regional gasification programs are being implemented jointly by Gazprom and the authorities of 67 federal constituents. For its part, the Company finances the construction of inter-settlement gas pipelines delivering gas to localities, while regional authorities lay down street networks and prepare consumers for receiving gas.
Between 2005 and 2014, Gazprom allocated about RUB 242.5 billion for the gasification of Russian regions.
Gazprom’s funding for gasification programs, RUB billion
Between 2005 and 2014, 1,802 gas pipelines with a total length of over 25 thousand kilometers have been built and the conditions for gasification of over 700 thousand apartments and households, along with 4 thousand boiler houses, have been created. As a result, Russia’s gasification level reached 65.4 per cent (including 70.3 per cent in urban areas and 54.6 per cent in rural areas) as of December 31, 2014.
Gasification level in Russia
In 2015, as in previous years, Gazprom fulfilled all of its obligations. 87 gas pipelines stretching for 1,275 kilometers in total were built in 34 constituent entities of the Russian Federation. This enabled gasification of 206 localities. The gasification level in Russia increased to 66.2 per cent (70.4 per cent in urban areas and 56.1 per cent in rural areas).
Inter-settlement gas pipeline under construction
Gasification of Eastern Russia
The state-run Eastern Gas Program is being implemented under Gazprom’s supervision. The Program prioritizes inter alia gas supply to the consumers in Eastern Siberia and the Russian Far East.
The Company has been extensively working to establish new gas production centers, develop the existing ones and build gas transmission capacities. These strategic projects form the basis for the implementation of gasification programs in the Russian Far East.
Over the past five years, major generating facilities have been converted to gas through the work of Gazprom in a number of large cities, particularly in Kamchatka, Sakhalin and the Primorye Territory. There are inter-settlement gas pipelines and gas distribution stations currently under construction in the Kamchatka, Primorye, 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.
The Concept for Gazprom’s participation in the gasification of Russian regions stipulates a differentiated approach to the gasification process depending on the existence and the development level of natural gas reserves in the regions, as well as the possibility of using fuel alternatives, including liquefied and compressed natural gases (LNG and CNG), and liquefied petroleum gas (LPG).
Special attention is paid to the gasification of small localities and those remote from gas trunklines, which is particularly important in rural areas.
In 2014, Gazprom implemented the first autonomous gasification project. The Company built an LNG complex in the Perm Territory. The complex will gasify 2.2 thousand households and convert nine boiler houses to gas. It consists of an LNG mini-plant in the Kanyusyata village (Karagay District) and three natural gas receiving, storage and regasification facilities. The annual capacity of the complex amounts to 19 million cubic meters of gas.
LNG complex in Perm Territory
Gasification 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.
Gasification level in Armenia reaches 95 per cent
Gazprom Armenia is among the energy leaders in Armenia. Natural gas is used in 600 Armenian localities. The gasification level in Armenia reaches 95 per cent.
The gas supply and gasification program of Kyrgyzstan till 2030 plans to gasify 411 localities and 845 thousand apartments. The gasification level in Kyrgyzstan will increase from 22 per cent up to 60 per cent.