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64<br />

Performance Results<br />

Transportation and Underground Storage<br />

Transportation and underground storage in Russia<br />

In Russia, <strong>Gazprom</strong> operates a gas transportation system of a unique scale and characteristics,<br />

infallibly providing highly reliable supplies. This makes OAO <strong>Gazprom</strong> an attractive<br />

energy partner.<br />

<strong>Gazprom</strong> operates the world’s largest gas transportation system.<br />

Its core structures are part of Russia’s Unified Gas Supply System that comprises gas production,<br />

transportation, processing and underground storage facilities located in the European<br />

part of Russia and Western Siberia. Centralised management, highly ramified structure and redundant<br />

transportation routes provide substantial robustness, together with efficient and uninterrupted<br />

gas supplies.<br />

The Group also owns trunk gas pipelines in the Russian Far East: Sakhalin — Khabarovsk —<br />

Vladivostok, Oktyabrsky — Khabarovsk, and Sobolevo — Petropavlosk-Kamchatsky.<br />

Stable operation of the gas transportation system is viewed as a high priority by the Company.<br />

The reliability of the gas transportation system has an impact on OAO <strong>Gazprom</strong>’s financial performance<br />

and reputation overseas as well as in Russia.<br />

At the 2014 year-end, the length of the GTS was 170.7 thousand km. The GTS comprises 250<br />

compressor stations including 3,825 GPUs with the total capacity of 46.1 GW. Moreover, gas is<br />

supplied to the GTS through gas pipelines of gas production and processing subsidiaries and<br />

OOO <strong>Gazprom</strong> PHG, measuring 4.5 thousand km overall.<br />

<strong>Gazprom</strong>’s gas transportation system: reliability pillars<br />

— Inherent design reliability.<br />

— Multiline sections of large diameter pipelines (1,420, 1,220 and 1,020 mm) in key transportation corridors,<br />

all operated in the same process conditions.<br />

— A well-developed network of underground gas storage facilities located in key consumption areas.<br />

— Centralised operation and maintenance.<br />

— Inter-system connections and backup gas pumping units (GPUs).<br />

— Well-timed upgrade and overhaul.<br />

Trunk pipeline breakdown by time in service in Russia, thousand km<br />

Time in service<br />

Length<br />

as of<br />

31 December 2013<br />

as of<br />

31 December 2014<br />

Less than 10 years (inclusive) 21.1 20.6<br />

From 11 to 20 years (inclusive) 20.0 20.7<br />

From 21 to 30 years (inclusive) 56.5 50.6<br />

From 31 to 40 years (inclusive) 41.7 46.6<br />

From 41 to 50 years (inclusive) 19.7 20.6<br />

Over 50 years 9.9 11.6<br />

Total 168.9 170.7<br />

As the GTS owner, <strong>Gazprom</strong> provides independent suppliers with non-discriminatory access<br />

to its gas pipelines, provided that there is available capacity and that the company applying for<br />

gas transportation has a gas production license and a gas take-or-pay agreement in place. In<br />

2014, 24 companies outside the Group transported gas via <strong>Gazprom</strong>’s GTS in Russia. In 2014,<br />

volumes of transported gas totalled 121.1 bcm, i.e. a 8.7% growth y-o-y. Competition kept<br />

increasing in the gas market in 2014, driven by more favourable business conditions offered to<br />

independent producers than to <strong>Gazprom</strong>.<br />

OAO <strong>Gazprom</strong> Annual Report 2014

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