Board of Directors reviews proposals on development of gas supplies to population


The Gazprom Board of Directors took note of the information on the implementation of a socially-oriented and cost-effective system of gas infrastructure expansion and gas supplies to serve the needs of the population.

The current procedure for cooperation within the framework of gas infrastructure expansion across Russian regions delineates responsibilities among participants as follows. The administrations of the constituent entities of the Russian Federation prepare proposals on the construction of gas supply facilities on the basis of social-and-economic development plans. Taking this into account, Gazprom draws up five-year gas supply and gas infrastructure expansion development programs to be signed by the parties. The Company provides its own funds for the construction of gas pipeline branches, gas distribution stations, and inter-settlement gas pipelines up to the borders of localities. Regional authorities are responsible for the construction of intra-settlement gas distribution networks and preparation of consumers for gas supplies.

At the present time, Gazprom and regional authorities are jointly finalizing the programs for the upcoming five-year period, i.e. for 2021–2025. By the end of this year, approval will be provided to 67 of these programs, which are for the most part socially oriented.

The amount of funding from the Company will see a 2.9-fold increase to RUB 526.1 billion as compared to the years 2016–2020. It is planned to create the conditions for bringing gas to 3,632 localities, which is 2.7 times more than in the previous five-year period. The gas penetration rate across the country will rise from 71.4 per cent (the rate projected for January 1, 2021) to 74.7 per cent. Gas grid expansion activities will be entirely completed in 35 regions of the Russian Federation.

The implementation of said programs provides for, inter alia, widespread introduction of intellectual gas metering systems with telemetry data transmission options and gas hazard detections systems, which will make it safer to use gas in homes.

Gazprom and executive authorities continue their joint work on performing the instructions of the President of Russia dated May 31, 2020, as regards the implementation of a socially-oriented and cost-effective system of gas infrastructure expansion and gas supplies to serve the needs of the country's population.

In July 2020, Gazprom sent its proposals for the roadmap which is currently being drawn up by the Russian Ministry of Energy. The main proposals are about including the construction projects for input gas pipelines up to the land plots of consumers into gas infrastructure expansion programs, determining the sources of financing for gas infrastructure expansion programs, and defining the criteria to be met by consumers for their free-of-charge connection to gas supply grids. The proposals also touch upon the introduction of amendments to urban planning, land, forest, and tax legislation with a view to facilitating the implementation of gas infrastructure expansion programs.

In addition to that, as instructed by the President of Russia, the Government of Russia and Gazprom will jointly study the possibility for the Company to become a single operator of gas supply and gas infrastructure expansion programs, and for gas distribution companies to become single operators in their regions. This will enable Gazprom to perform the construction of all required gas infrastructure facilities: gas pipeline branches, inter-settlement and intra-settlement gas pipelines, and input gas pipelines from intra-settlement networks to the land plots of consumers (“last-mile gas pipelines”).

The Management Committee was tasked to ensure that work continues on the implementation of a socially-oriented and cost-effective system of gas infrastructure expansion and gas supplies to serve the needs of the population.

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