Gazprom-AR2014

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Performance Results
Gas Infrastructure Expansion and Gas Distribution,
Development of NGV Fuel Markets
By implementing a far-reaching gas infrastructure expansion programme, Gazprom is
creating conditions for economic growth in the majority of Russian regions. Every year,
the programme helps to make life safer and more comfortable for millions of people.
In gas distribution, Gazprom Group’s affiliates and companies under its control operate Russia’s
largest pool of property assets spanning 70 regions. As of 31 December 2014, the following facilities
were in operation:
— 734.0 thousand km of gas distribution networks;
— 273.9 thousand gas pressure reduction stations;
— 97.7 thousand electrochemical protection facilities.
In 2014, 246.7 bcm of natural gas were transported via gas distribution networks owned or
rented by the Group’s gas distribution entities. Gas was supplied to:
— 27 million apartments and private households;
— 31.5 thousand industrial facilities;
— 6.5 thousand agricultural facilities;
— 286.9 thousand utilities.
Expanding gas infrastructure across Russia
One of Gazprom’s highest business priorities is gas infrastructure expansion across Russian regions,
including the Far East and Eastern Siberia. Gazprom is implementing a large-scale programme
to expand gas infrastructure in 67 Russian regions. The project directly benefits the economic
potential of virtually every Russian region and is raising the standard of living for millions
of citizens. Moreover, expanding the gas supply system allows of using natural gas as the most
sophisticated and clean alternative to other fuels.
As part of the Russian Government’s Development Programme for an Integrated Gas Production,
Transportation and Supply System in Eastern Siberia and the Far East, the commissioning of
the trunk pipeline Sakhalin — Khabarovsk — Vladivostok enhanced gas infrastructure development
in the Primorye and Khabarovsk Territories. The General Scheme for Gas Supply and Gas Infrastructure
Development of the Sakhalin Region and Primorye Territory was updated. Three inter-community
gas pipelines and the Yelizovo GDS were constructed in the Kamchatka Territory. Two
inter-community gas pipelines from the Khor GDS were constructed in the Khabarovsk Territory.
In 2014, RUB 28.8bn was invested in the Programme for Expansion of Gas Infrastructure in
Russian Regions (inclusive of VAT).
The Group completed 105 inter-community gas pipelines in 33 Russian regions, measuring
1.4 thousand km, to connect gas supply to 236 communities, 29.6 thousand households and
apartments, and enable a switchover of 200 boiler plants to natural gas.
Also, in the reporting year Gazprom constructed an LNG facility in the Perm Territory. The facility
is the first self-sustaining LNG supply project implemented within the Programme for Expansion
of Gas Infrastructure in Russian Regions. It includes a mini LNG plant at the village of Kanyusyata
(Karagay District) and three stations for intake, storage and regasification of natural gas. With a
capacity of 19 mmcm per year, the facility will allow of connecting gas supply to 2.2 thousand
households and switch nine boiler plants to gas.
The gas infrastructure coverage in Russia reached 65.4% by December 31, 2014: 70.3% in
urban and 54.6% in rural areas.
However, most Russian regions are still slow in preparing consumers for gas consumption,
while outstanding debt for the gas supplied remains high, which is forcing Gazprom to make
downward adjustments to investments under the Programme for Expansion of Gas Infrastructure
in Russian Regions.
Gazprom is actively involved in the expansion of gas distribution systems in Armenia and Kyrgyzstan.
The general scheme of the Programme for Expansion of Gas Infrastructure of Kyrgyzstan
Until 2030 provides for connecting gas supply to 411 communities and 845 thousand apartments.
OAO Gazprom Annual Report 2014