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Underground Gas Storage facilities

Kasimovkoye UGS

Kasimovkoye UGS

Underground gas storage facilities (UGSs) are an integral part of the Unified Gas Supply System of Russia and are situated in the main gas consumption regions. UGS facilities help to smooth out seasonal fluctuations of gas demand, reduce peak loads in UGSS and provide for better flexibility and reliability of gas supply. The network of UGSs supplies up to 20 per cent of gas during the heating season and up to 30 per cent of gas during cold snaps to Russian consumers. There are 24 underground gas storage facilities in the Russian Federation, of which 7 were built in water-bearing formations and the remaining 17 sit in the depleted gas fields.

Expansion of UGS capacities is a strategic objective of Gazprom. Establishment of UGS facilities for smoothing out seasonal fluctuations is 5-7 times less expensive than erection of corresponding reserve extraction and transmission facilities.

By the 2006-2007 withdrawal period, 62.6 bcm of gas was injected into Russia's UGSs.

Gazprom keeps increasing the output of underground gas storage facilities putting new facilities in operation. In 2005, the working volume of UGSs grew 1.9 bcm.

3 new underground gas storage facilities are currently under construction in Russia: the first one in the water-bearing formation of the Udmurt Reserve Compound, the second and the third ones in rock salts of the Kaliningradskoye and Volgogradskoye UGSs. The latter will Europe's largest and Russia's first rock-salt underground gas depot with 800 mln cu m of working gas volume and 70 mcm of daily output.

Gazprom also stores gas in UGSs abroad. The Company is co-owner of Europe's largest Rehden UGS facility (Germany). In July 2005, a leasing agreement with Vitol was signed providing Gazprom with a 5-year access to 50 per cent of the Humbly Grove GS facility in the southern Great Britain.

Gazprom also uses UGSs in Ukraine, Latvia, Germany, and Austria, with new storage capacities being built in Belgium and Austria

Commercial gas volume in Russian UGSs, bcm: