Gazprom maintaining fast pace of implementing five-year programs for gas supply and gas infrastructure expansion in Russian regions
The Gazprom Management Committee took note of the information about the progress of the Company's programs for gas supply and gas infrastructure expansion in the constituent entities of the Russian Federation and their synchronization with regional programs for converting housing and utilities, industries and other entities to gas, as well as the information about gas supply and extension of gas grid coverage in the Krasnoyarsk Territory.
It was highlighted that Gazprom maintains a fast pace of implementing the programs for gas supply and gas infrastructure expansion in Russian regions for 2021–2025. Since the beginning of this year, 87 inter-settlement gas pipelines have been built with their total length exceeding 1,500 kilometers, which provided the possibility of gas grid connection for over 58,000 households and apartments (or 89 per cent of the 2021 target indicator) and 184 boiler houses (or 97 per cent of the target indicator) in 178 localities. Taking into account the current dynamics of work, Gazprom expects to exceed the initial plan for 2021 as regards the construction of inter-settlement gas pipelines.
Work is underway to implement the instruction of Vladimir Putin, President of the Russian Federation, for expediting additional gas grid expansion in the localities that are already provided with gas. Since the beginning of 2021, gas has reached over 90,000 private households.
Consumer applications for connections to gas grids continue to be collected. To make the application process clear and simple, Gazprom is conducting a broad awareness campaign, in particular, by arranging regular visits of mobile offices to Russian regions to interact with the population. In the mobile offices, local citizens can ask questions about the terms and conditions of additional gas grid expansion and apply for a gas connection. Applications can also be submitted through the client centers of Gazprom Mezhregiongaz or the website of the single operator of gas infrastructure expansion in the Russian Federation https://connectgas.ru/.
The Management Committee paid special attention to reviewing the prospects of gas supply and gas infrastructure expansion in the Krasnoyarsk Territory. The work is now underway on adjusting the region's General Scheme for gas supply and gas infrastructure expansion.
The issue of the implementation of Gazprom's programs for gas supply and gas infrastructure expansion in the constituent entities of the Russian Federation and their synchronization with regional programs for converting housing and utilities, industries and other entities to gas, as well as the issue of gas supply and extension of gas grid coverage in the Krasnoyarsk Territory will be submitted for consideration by the Gazprom Board of Directors.
As per the list of instructions of Vladimir Putin, President of the Russian Federation, dated May 31, 2020, gas infrastructure expansion in Russia is to be completed in a stepwise manner by 2024 and 2030, and residential consumers must not bear any expenses for the connections to gas distribution networks.
In June 2021, a number of important amendments were introduced into Federal Law No. 69-FZ on Gas Supplies in the Russian Federation. In particular, the concepts of a single operator of gas infrastructure expansion and a regional one were established in said document. The Russian Government was vested with the authority of designating the single operator of gas infrastructure expansion, schemes of cooperation between the parties to gas grid expansion activities, and oversight schemes for the works.
In July 2021, the Russian Government appointed Gazprom Gazifikatsiya (established by Gazprom Mezhregiongaz and Gazprom Gazoraspredeleniye) as the Single operator of gas infrastructure expansion and approved the list of territories falling under the purview of said Single operator, which includes 66 constituent entities of the Russian Federation and the Sirius federal territory.
The Single operator will build gas pipeline branches, gas distribution stations, inter-settlement gas pipelines, and gas distribution networks up to the boundaries of land plots, thus making it possible to synchronize to a great extent the construction of gas infrastructure expansion facilities, achieve a considerable optimization of the construction costs, and significantly reduce the time required for connecting consumers to gas supply networks.
The establishment of the role of a single operator of gas infrastructure expansion also serves to perform the instruction of Vladimir Putin, President of the Russian Federation, voiced by him on April 21, 2021. By 2023, additional gas infrastructure expansion shall be completed in the country, i.e. gas pipelines shall be laid up to the boundaries of households and gardeners' non-commercial partnerships that are not connected to gas, but are situated within localities already covered by the gas grid, provided that these activities do not cause the need to expand the flowrate of gas distribution stations. Said additional gas infrastructure expansion shall not require any payments from the population.