Gas infrastructure expansion
Increasing the gas penetration rate across Russian regions is one of Gazprom’s most extensive and socially significant activities in the domestic market. These efforts facilitate social and economic development across Russia and improve the living standards of the country’s population. In addition to Gazprom, Gazprom Mezhregiongaz, and gas transmission and distribution organizations, contributions to this work are made by the governments and administrations of the constituent entities of the Russian Federation.
Gazprom’s activities for regional gas supply and gas infrastructure expansion are based on five-year programs, which define the specific gas grid infrastructure required to be built, the timeframes for its construction, the estimated amounts of investment, and the sources of financing.
The programs for 2021–2025 were signed with 67 constituent entities of the Russian Federation. They stipulate that over 24,000 kilometers of gas pipelines will be built (2.5 times more than in the previous five years) and conditions for bringing gas to 3,600 localities (a 2.7-fold increase) will be created.
Between 2005 and 2020, Gazprom allocated a total of RUB 451.6 billion to expand the gas grid coverage in Russian regions.
The Company plans to channel RUB 526.1 billion into gas infrastructure expansion in Russian regions in 2021–2025, which exceeds the amount of investments made in the previous fifteen years.
Gazprom’s funding for gas infrastructure expansion programs, RUB billion
From 2005 to 2020, over 2,500 gas pipelines with a total length of more than 35,500 kilometers were built. As a result, the gas penetration rate in Russia reached 71.4 per cent (73.7 per cent in cities and towns and 64.8 per cent in rural areas) by January 1, 2021.
Gas penetration rate across Russia, per cent (at year end)
In 2020, just as in previous years, Gazprom fulfilled all of its obligations by constructing 141 gas pipelines stretching for 2,190 kilometers in the Russian Federation.
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, as well as the Sakhalin and Amur Regions. In a medium-term perspective, natural gas will reach southern Yakutia 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 stations. The complex has the annual capacity of 19 million cubic meters of gas.
The construction project for six facilities, namely, a small-scale gas liquefaction complex with an hourly capacity of 7 tons and five gas receiving, storage and regasification stations, is underway in the Tomsk Region.
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.
Gazprom Armenia is a leader in Armenia’s energy industry. Natural gas is supplied to 636 Armenian population centers, with the gas penetration rate across the country reaching 96 per cent.
It is planned to provide gas to more than 400 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.