GAZPROM MANAGEMENT COMMITTEE ENDORSED AN INTEGRATED PROGRAM FOR RECONSTRUCTION AND TECHNICAL RE-EQUIPMENT OF GAS TRANSPORTATION FACILITIES FOR 2007-2010

Gazprom Management Committee endorsed the fourth Integrated program for reconstruction and technical re-equipment of gas transportation facilities and UGS compressor stations for 2007-2010.

The Committee decided that this Complex program will provide the baseline for preparation of the annual and medium-term investment programs of Gazprom related to reconstruction and technical re-equipment of the gas transportation facilities.

Reference:

The Integrated program for reconstruction and technical re-equipment of gas transportation facilities and UGS compressor stations for 2007-2010 was developed by VNIIGAZ (a 100 per cent subsidiary of Gazprom) under the supervision of Gazprom technical management departments. This program was developed after accomplishment of the Integrated program for reconstruction and technical re-equipment of gas transportation facilities, booster compressor stations and UGS compressor stations for 2002-2006.

In the framework of the Integrated program over 2002-2006, the amount of work performed helped to prevent a 16 bcm capacity decrease of the gas transportation system, to provide up to 2.3 bcm capacity increment for the gas transmission system, also to decrease the emissions of the nitrogen oxides by 5.8 thousand tons per year and the carbon dioxide by 2.4 mln tons per year. The UGS reconstruction performed helped significantly to increase the daily average UGS production capacity up to 39.8 mcm during the withdrawal timeframe from December till February.

Main goals of the Integrated program for 2007-2010 envisage enhancement of the gas transportation system efficiency, provision of the natural gas transmission in the planned amounts as well as reliable operation of the gas transportation system, and also an increase of industrial and ecological safety levels at the gas transportation facilities.

Primary objectives during reconstruction of the gas transportation facilities up to 2010 were set as follows:

• Eliminate the gas transportation system bottlenecks with the due account of gas pipeline loading now and in future;
• Maintain the achieved level of technically possible production capacity of the gas transportation system by means of a consolidated reconstruction effort at the compressor stations and the gas pipelines in service;
• Increase the production capacity of the gas transportation system segments  to stockpile assets required  for the gas pipeline overhaul in the optimal amounts;
• Enhance the  flexibility and maneuverability of the gas transportation system by construction of intersystem connectors;
• Prepare gas pipelines  for the  intra-pipe diagnostics;
• Enhance reliability of the gas supply to customers by  reconstruction of the branch pipelines and the gas distribution stations;
• Maintain the achieved UGS coefficients and a high level of reliability using  highly efficient equipment sets;
• Achieve a further increase in the indicators of the UGS efficiency.

Within the framework of the Integrated program for 2007-2010 it is planned specifically to perform:

• Reconstruction of  gas pipeline some 5,000 km long with various outer diameter of line pipes;
• Replace  and/or upgrade more than 500 gas pumping units;
• Reconstruction of over 300 gas distribution stations and the branch gas more than 900 km long.