The Gazprom Management Committee has reviewed the readiness of the Unified Gas Supply System (UGSS) facilities for the period of peak loads in autumn/winter 2011–2012 as well as the measures required to ensure uninterrupted gas supplies to Russian consumers over winter periods in the long run.

The meeting noted that the UGSS was generally ready for the forthcoming autumn/winter period. Over nine months of the current year 1,821 kilometers of gas pipelines were overhauled, in-line inspection of 16.2 thousand kilometers of gas pipelines was performed and electrometric survey of 18.6 thousand kilometers of gas pipelines was conducted. 73 and 746 submerged crossings were investigated and inspected accordingly. 568 gas compressor units were renovated and 66 kilometers of process pipelines at compressor stations were comprehensively repaired. Productivity of underground gas storage (UGS) facilities was raised: the maximum daily sendout will make up 647.7 million cubic meters of gas in the beginning of the withdrawal season, while the average daily sendout from December through to February will make up 522.1 million cubic meters of gas representing a 27.7 and 22.1 million cubic meters increase versus last year. The increase is commensurate with the average daily gas consumption during the winter period in such Russian constituents as the Belgorod Oblast, for example.

The work has been practically completed on replenishing the UGS facilities with roughly the same gas volume as was withdrawn during the last autumn/winter period as well as on accumulating the operating gas reserves in the amount of 65.2 billion cubic meters which is 1.2 billion cubic meters more versus 2010.

During preparations for the 2011–2012 winter period, comprehensive scheduled maintenance and repair operations were conducted at 16 UGS facilities.

The planned actions on preparing gas distribution systems in regional and municipal gas distribution companies are nearing completion. At present, Gazprom Group's subsidiary and affiliated gas distribution companies are servicing 632.7 thousand kilometers of gas pipelines supplying gas to 41.4 thousand boiler houses, more than 19.7 thousand industrial and 221.8 thousand residential and utility consumers.

The reliability assurance measures at gas production companies included, inter alia, commissioning of new wells in the Orenburg field and the Achimov deposits in the Urengoy field as well as extra booster compressor capacities in the Vyngaiakhinskoye and Yety-Purovskoye field. As of October 1, 2011, 435 wells were overhauled. It is planned to commission before the year end the Nyda area in the Medvezhye field with the nominal capacity of 2 billion cubic meters of gas per annum.

During the peak load periods, daily gas production will be maintained at 1,630 million cubic meters which is 16 million cubic meters up versus the top level reached last autumn/winter.

At the same time, successful operation during peak loads will largely depend on the availability of backup fuel reserves (fuel oil, coal, etc.) at power generation facilities and large industrial enterprises as well as on the regional gas consumption discipline and compliance with Schedule 1. In this respect, the Management Committee highlighted that Gazprom would strictly enforce the discipline of gas consumption within the preset limits at industrial companies.

Heads of subsidiary companies and organizations of Gazprom were tasked to complete timely preparation of the Unified Gas Supply System facilities for operation in autumn/winter 2011–2012 and ensure reliable and sustained functioning of process capacities.

Background

To secure uninterrupted gas supply to the residential and utility sectors, a schedule of converting Russian industrial consumers to backup fuels (Schedule 1) is endorsed annually by regional authorities.

Schedule 1 is applied under Article 19 of the Regulations on Gas Supply in the Russian Federation approved by the Russian Federation Government Directive No.162 dated February 5, 1998. Schedule 1 stipulates partial conversion of industrial consumers to backup fuels (fuel oil, peat, coal, etc.) under abnormally low temperatures in order to save a certain amount of gas and to use it for meeting increased demand of the residential and utility sectors.

Conversion to backup fuels and their timely procurement are provided for in the gas supply contracts made with all industrial consumers.