On meeting dedicated to Gryazovets – Vyborg gas pipeline project and gas supply to Kaliningrad Oblast

RELEASE

Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee held a meeting at the Gazprom Headquarters dedicated to implementing the project for the Gryazovets – Vyborg gas pipeline construction and developing the gas supply to the Kaliningrad Oblast.

The meeting brought together Oleg Aksyutin, Head of the Gas Transportation, Underground Storage and Utilization Department, heads and specialists from the relevant divisions of the Gazprom Administration, as well as Yamalgazinvest, Gazprom invest Zapad, Gazkomplektimpex and Giprospetsgaz.

The meeting participants discussed the current construction status of the Gryazovets – Vyborg gas pipeline to be utilized, inter alia, for gas conveyance to the Nord Stream gas pipeline. It was noted that the pipeline construction was progressing on schedule. The current year will see the commissioning of some 165 km of its line pipe, at the same time the total length of the completed and brought onstream linear part of the Gryazovets – Vyborg gas pipeline will total some 475 km.

The meeting also addressed the progress in developing the gas supply to the Kaliningrad Oblast. It was emphasized that expansion of the gas transportation capacities and creation of the Kaliningrad underground storage facilities were being implemented in line with the previously defined deadlines.

Based on the meeting results the Gazprom relevant divisions and subsidiary companies were authorized with the tasks aimed at maintaining the projects implementation.

Background

The Nord Stream gas pipeline (Nord Stream) is a fundamentally new route for Russian gas exports to Europe. The Nord Stream will run across the Baltic Sea from the Portovaya Bay (in the vicinity of Vyborg) to the German coast (in the vicinity of Greifswald). The gas pipeline length will be some 1,200 km.

In order to connect the Nord Stream to the Unified Gas Supply System, the new gas pipeline Gryazovets – Vyborg (917 km) will be constructed on the territory of the Vologda and Leningrad Oblasts. The first joint of the Gryazovets – Vyborg gas pipeline was welded on December 9, 2005 in the Vologda Oblast (Babaevo). Between 2006 and 2007 approximately 310 km of the gas pipeline were brought onstream.

Under the work schedule, 442 km of the line pipe and compressor workshops at the Gryazovetskaya, Babaevskaya, Volkhovskaya, Elizavetinskaya and Portovaya compressor stations will be created and commissioned between 2009 and 2011.

Pursuant to the Russian Federation Government assignments Gazprom has developed and is implementing the Plan of Actions aimed at supplying the Kaliningrad Oblast with 2.5 bcm of gas by 2010. The Plan stipulates constructing the Kaliningrad UGS facility, an increase of the Krasnoznamenskaya compressor station and the Minsk – Vilnius – Kaunas – Kaliningrad pipeline capacities.

In 2007 Gazprom supplied 1.21 bcm of gas to consumers of the Kaliningrad Oblast. This year the supply volumes are planned to be at 1.44 bcm.

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