Conditions for connecting consumers to gas in 156 localities created by Gazprom since early 2021
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.
It was noted that gas infrastructure expansion is the most ambitious socially significant project of Gazprom. The Company continues to implement the instructions of Vladimir Putin, President of the Russian Federation, for expediting additional gas grid expansion in the localities that are already provided with gas, as well as achieving the stepwise completion of gas infrastructure expansion in Russia.
The meeting reviewed the preliminary results of the work undertaken to that end in 2021. Gazprom is actively implementing the programs for gas supply and gas infrastructure expansion in Russian regions for 2021–2025. Since the start of 2021, the Company has built 78 gas pipelines stretching for about 1,400 kilometers and created the conditions to bring gas to households, apartments and boiler houses in 156 localities.
In September 2021, the Russian Government approved the regulatory acts pertaining to additional gas grid expansion. The documents outline, inter alia, the rules for connecting households to gas distribution networks as part of additional gas grid expansion efforts, the procedure for consumer engagement, and the timelines of this program. The appropriate legislative changes were developed taking into account the proposals put forward by Gazprom.
Currently, Gazprom and the constituent entities of the Russian Federation continue collecting applications for gas connections in the localities that are already provided with gas. As of today, more than 350,000 applications have been received from across the country.
Consumers can apply for a gas connection via several channels: for instance, via the client centers of the Gazprom Mezhregiongaz Group and the multifunctional centers, via the federal or regional portals of government services, or the special-purpose website of the single operator of gas infrastructure expansion in the Russian Federation https://connectgas.ru/. The platforms of the Gazprom Mezhregiongaz Group and the single operator of gas infrastructure expansion are functioning in a single-window format. In addition to filing applications, they allow the users to, inter alia, make a preliminary calculation of how much it will cost to build the networks within the boundaries of a land plot, buy gas-using equipment (boilers, gas stoves, gas meters) and make an order for its installation.
Based on consumer applications, proposals from the single and regional operators of gas infrastructure expansion, technical capabilities of the gas transmission infrastructure and other parameters, the constituent entities of the Russian Federation have drawn up and are finishing the asset-by-asset plans of additional gas grid expansion. The Russian Government recommended that the regions approve these documents before October 1, 2021.
The Management Committee was tasked with continuing the work 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 Board of Directors also approved the Long-Term Development Program of Gazprom (Gazprom Group) for 2022–2031. In addition, the meeting reviewed and took note of the information on the possibility for Gazprom to transition to tax control in the form of tax monitoring.
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.
On April 30, 2021, the Russian Government, in line with the instructions of the country’s leadership, approved the Action plan (roadmap) for the implementation of a socially-oriented and cost-effective system of gas infrastructure expansion and gas supplies to serve the needs of the constituent entities of the Russian Federation. Among the significant novelties provided for by the document is the introduction of the role of a “single operator of gas infrastructure expansion.”
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.