Gazprom further creating conditions for connecting maximum consumers in Russia to gas grid

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 natural gas, being the most eco-friendly and cost-effective type of fuel, must be made available to as many Russian consumers as possible. This is the aim of the instructions given by Russian President Vladimir Putin.

Gazprom carries out large-scale work on performing the instructions. The implementation of the 2021–2025 programs for gas supply and gas infrastructure expansion in the constituent entities of the Russian Federation is in full swing. In accordance with the corresponding schedules, the Company designs and builds gas pipeline branches with gas distribution stations, as well as intra-settlement and inter-settlement gas pipelines.

With the creation of new infrastructure, Russian regions gain more possibilities for additional gas grid expansion, i.e. for getting gas pipelines laid to the boundaries of private households and boiler houses of medical facilities and educational entities at no cost to the consumers. As of today, the technical possibility of taking part in additional gas grid expansion has been created for 1.3 million households in Russia. Pipeline gas has reached the boundaries of 1.06 million households under the existing contracts with the citizens. The bulk of said works was performed by the gas distribution entities (GDEs) of the Gazprom Group.

Medical facilities and educational entities also get their boiler houses connected to gas in a systematic manner. As of today, a total of 802 contracts have been signed with such facilities and entities, and more than a half of them (437 contracts) have been performed.

In April 2024, the collection of applications started for bringing pipeline gas to the households within gardeners' non-commercial partnerships on a free-of-charge basis.

One can check whether a household can be connected to gas, make an application for additional gas infrastructure expansion, conclude a corresponding contract, and follow the progress of the construction works via, inter alia, the website of the Single Operator of gas infrastructure expansion (SO, Gazprom Gazifikatsiya). Since May 2024, a permanent section on Additional gas grid expansion for households located in a gardeners' non-commercial partnership has been available at the website.

In parallel, Gazprom continues to participate in developing proposals to improve the national legislation. The proposals are designed to further streamline and accelerate the works on gas infrastructure expansion and additional gas grid expansion in the constituent entities of the Russian Federation.

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 Gazprom Board of Directors reviewed the information on the measures undertaken to inventory ownerless gas facilities in Russian regions, as well as to optimize the procedure of their handover to specialized organizations for further operation in line with the laws of the Russian Federation.

It was noted that proper operation of gas facilities is a guarantee of uninterrupted natural gas supplies to consumers. The lawful owners of gas networks are obliged to ensure timely inspection, maintenance and repair activities in this regard.

The Gazprom Group continues its systematic efforts to reduce the number of ownerless gas networks in Russia. The gas distribution entities of Gazprom regularly inventory gas distribution networks within the areas operated by them. The information about the detected ownerless facilities is submitted to local authorities for their registration and transferring to municipal ownership.

The work is yielding results. The number of ownerless gas pipelines in the constituent entities of the Russian Federation is consistently reducing. For instance, since the beginning of 2022, the length of such pipelines has reduced by more than 30 per cent and was 5,800 kilometers as of August 1, 2024. In 2023–2024 alone, the Company determined the owners of more than 2,000 kilometers of gas pipelines.

The Management Committee was tasked with further implementation of the measures for inventorying ownerless gas facilities and optimizing the procedure of their handover to specialized organizations for subsequent operation in line with the laws of the Russian Federation.

The Gazprom Board of Directors also reviewed the issue pertaining to the development of projects for the production and sales of helium and other noble gases. The Management Committee was tasked with continuing the ongoing work.