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Gazprom to develop underground gas storage system

01 October 2008

Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee chaired a meeting dedicated to the underground gas storage (UGS) system development. The meeting participants discussed current issues and prospects for the development of the UGS system in Russia and abroad.

It was noted that UGS facilities are among crucial elements in reliable functioning of the Unified Gas Supply
System of Russia providing up to 30% of gas supplies during winter periods.

The meeting emphasised that the gas transmission system goes through the active development now, which is directly linked to gas production growth both by Gazprom and by independent producers as well as higher gas demand in Russia and abroad. In this context, the contribution of UGS facilities to the optimal performance of the gas transmission system increases considerably.

Ananenkov emphasised that securing reliability and enhancing flexibility of gas supplies as well as the potential increment in the peak daily send-out of UGS facilities to 1 bcm by the start of the withdrawal season are the main tasks in the UGS System development being currently implemented by Gazprom.

The participants addressed the progress in engineering and development of new storage facilities, reconstruction and technical re-equipment of existing facilities within the execution of the 2005-2010 programme for underground gas storage activities in the Russian Federation. In particular, the company is
now constructing three and designing seven new UGS facilities within Russia.

Special attention was paid to the issues of creation and synchronised development including helio-storage in Eastern Siberia and the Far East as an integral part of the unified gas production, transmission and supply system currently developed in the region.

Issues regarding UGS facilities development and utilisation abroad with the view to provide reliability and flexibility of export deliveries and to facilitate a burden on the gas transmission system, were also discussed.

Following the meeting results the Gazprom Administration’s core business units were engaged with ensuring the accelerated development of storage systems in Russia as well as implementing a number of activities to optimise functioning of the Gas Transmission System and UGS facilities.

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