Interaction with regions
Increasing the gas penetration level across Russian regions is one of Gazprom’s most extensive and socially significant activities in the domestic market.
Together with the authorities of 67 constituent entities of the Russian Federation, Gazprom implements regional gasification programs. 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.
Between 2005 and 2016, Gazprom allocated a total of about RUB 295.2 billion to expand the gas grid coverage in Russian regions.
Gazprom’s funding for gasification programs, RUB billion
During the period under review, 2,046 gas pipelines with a total length of over 28,000 kilometers were built, with conditions created for supplying gas to around 815,000 households and apartments, as well as 5,060 boiler houses. As a result, the gas penetration level across Russia reached 67.2 per cent (70.9 per cent for urban areas and 57.1 per cent for rural areas) as of December 31, 2016.
Gasification level in Russia
In 2016, as in previous years, Gazprom fulfilled completely its obligations, having built 163 gas pipelines stretching for about 1,425 kilometers.
In 2017, the Gasification Program covers 68 regions. The amount of the Company’s investments earmarked for gasification purposes in 2017 was increased from the previously planned RUB 25.7 billion to RUB 29.45 billion.
Inter-settlement gas pipeline under construction
Gasification of Eastern Russia
One of the priorities of the state-run Eastern Gas Program coordinated by Gazprom is to ensure 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 gasification programs in the Russian Far East.
Thanks to Gazprom’s efforts, major power generating facilities were converted to gas in a number of large cities located, inter alia, 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.
The concept behind Gazprom’s participation in the gas infrastructure expansion across Russian regions implies a differentiated approach to the gasification process, depending on the size of local natural gas reserves and the level of their development, as well as on 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 providing gas to 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, thereby creating conditions for supplying gas to 2,200 households and converting nine boiler houses to gas. The complex consists of an LNG mini-plant in Kanyusyata (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 a leader in Armenia’s energy industry. Natural gas is made available in 600 localities in Armenia, with the gas penetration level across the country reaching 95 per cent.
The Program for Gas Supply to and Gasification of Kyrgyzstan till 2030 plans to provide 411 localities and 845,000 apartments with gas, raising the gas penetration level in Kyrgyzstan from 22 up to 60 per cent.