The Research Institute for Natural Gases and Gas Technologies (VNIIGAZ) today has hosted the International Scientific and Practical Conference “Underground Gas Storage: Sustainability and Efficiency” (UGS-2006).

Mr. Bogdan Budzulyak, Head of the Gazprom Gas Transportation, Underground Storage and Utilization Department delivered a report at the Plenary Session.

Special attention was paid to the specific nature of the Russian gas transmission system development in the nearest decades.

In accordance with the Energy Strategy of Russia up to 2020, the Yamal Peninsula and northern seas offshore, Eastern Siberia and Far Eastern fields (including the far eastern seas offshore) will become the top priority gas production provinces in the long-term.

Exploiting Yamal’s gas resources will require constructing by 2030 a potent 300 bcm/y gas transmission system from the Peninsula. To be constructed with the use of the latest technological developments, the new pipeline system is expected to become a key element of the United Gas Transmission System of Russia (UGTS).

Creating a gas transmission system in Eastern Siberia and the Far East including the Sakhalin Island offshore will stimulate the regional socioeconomic development as well as expansion of gas export to the Asia Pacific countries. To this end, underground gas storage faces particular tasks in the region.

The report placed great emphasis on the gas transmission network upgrading issue, which is a major instrument for maintaining existing gas transmission capacities and the required level of gas transmission safety and security.

B. Budzulyak underlined that underground gas storage (UGS) facilities were a crucial element for the reliable operation of UGTS. UGS facilities are concentrated in the main gas consumption regions and help smooth out seasonal fluctuations in the market, shave peak demand as well as maintain gas supply flexibility and security.

“The UGS system created on the Russian territory enables to withdraw during peak loads up to 600 mcm of gas a day, which is commensurate with the maximum amount daily exported by Gazprom,” said B. Budzulyak. The Action Program for Underground Gas Storage in the RF over 2005 to 2010 contemplates reaching up to 700 mcm of daily UGS send-out by the 2010-11 withdrawal period.

The Program also stipulates creating within Russian UGS facilities 15.9 bcm of active capacity and related infrastructure.

In addition, Gazprom is active together with foreign partners in developing a gas storage network abroad.

The Conference will last for three days through October 13.

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The “UGS: Sustainability and Efficiency” Conference is being attended by representatives from Gazprom, Gasunie, Statoil, WINGAS and other companies.

The Conference will host sessions of the following Study Groups: “UGS on the liberalized market. New projects. New regions”, “Modern UGS engineering, development and operation technologies”, “UGS operation monitoring”. At these sessions scientists and specialists will present results of their research findings.

Founded in 1948, VNIIGAZ is the major Research & Development, Technology & Engineering Center of Gazprom involved in the resource base development, gas and condensate production, transmission and processing as well as in the gas industry environmental and industrial safety promotion.

In 2001 the Institute obtained the status of a research center. At present, VNIIGAZ employs over 1,500 highly qualified specialists (including 50 Doctors of Sciences and 250 Candidates of Sciences), houses the only Post-Graduate Studies School in the gas industry and has two Dissertation Councils within the RF Education Ministry’s Higher Certification Commission.