The XIV International Specialized Exhibition of the Natural Gas Industry and Technologies for Gas Facilities “ROS-GAZ-EXPO 2010” is underway in Saint Petersburg. The Conference “Raising Business Efficiency in Gas Distribution and Utilization Sectors” took place today as part of the Exhibition.

Oleg Aksyutin, Member of the Management Committee, Head of the Gas Transportation, Underground Storage and Utilization Department of Gazprom addressed the Conference with the speech entitled “Developing Gasification Technologies and Servicing Gas Distribution Facilities”.

He noted that over the last decade Gazprom had pursued the target-oriented policy of consolidating and structuring the gas distribution assets, as well as streamlining the business processes.

Gazprom’s prioritized activities in the gas distribution sector are assuring the reliability and safety of gas distribution systems and raising the business cost efficiency.

In this respect, the speaker said that expansion of activities on updating and developing gas distribution systems required that gas facilities had sufficient reserve funds. At the same time, operating costs for the said purposes are not always fully accounted for in the tariffs of gas distribution companies (GDC) due to legal restrictions on their growth.

Speaking of the gasification and gas supply development in Russia, Oleg Aksyutin reminded that Gazprom had endorsed the updated Concept for the Company’s participation in the Russian regions gasification. The new approaches to the gasification process are applied both at the stage of facilities construction and at the stage of regional gasification schemes elaboration. They are targeted at synchronized development of gas supply, distribution and consumption systems, as well as at the optimized utilization of pipeline, liquefied and compressed gas.

The updated Concept stipulates compliance with Gazprom’s technical specifications for gas distribution systems construction and retrofitting. This significantly promotes application of cutting-edge technologies and equipment and raises operational safety at gas distribution facilities.

In addition, the speaker emphasized that a substantial contribution into technical advancement of GDC facilities would be made by the corporate Technical Development Concept for gas distribution systems, which envisaged adoption of new operating principles and improvement of a system for technical status monitoring, as well as operational risks analysis and forecasting.

Background:

The XIV International Specialized Exhibition of Natural Gas Industry and Technologies for Gas Facilities “ROS-GAZ-EXPO 2010” and the Conference “Raising Business Efficiency in Gas Distribution and Utilization Sectors” are arranged by Gazprom, Gazpromregiongaz and Farexpo Exhibition Company.

The Exhibition displays advanced technologies and equipment applied in the gas distribution and utilization sectors, and supports innovative approaches, largely predetermining future evolution of the Russian gas distribution sub-industry.

Gazprom’s participation in the Russian regions gasification process represents a large-scale and socially significant area of the Company’s activities on the domestic market.

The Concept for Gazprom’s participation in the gasification of Russian regions defines its major activity areas in the gasification and natural gas utilization sectors, the mechanisms of their implementation in compliance with the Russian legislation in  force. The document lays the foundation for developing specific programs, organizational arrangements and regulatory documents governing Gazprom’s participation in the gasification process.

Between 2005 and 2009 Gazprom allocated more than RUB 90 billion to develop the General Schemes for gas supply to and gasification of regions and construction of  inter-settlement gas pipelines.

In December 2009 the Company approved the updated Concept for Gazprom’s participation in the gasification of Russian regions. Under the document, Gazprom uses a differentiated approach to  the gasification process depending on the availability and development level of natural gas reserves in the regions, as well as on the use of fuel alternatives including liquefied and compressed natural gases (LNG and CNG), and liquefied petroleum gas (LPG). In addition, the Concept describes the gasification mechanism for the population centers that are sparsely inhabited and detached from gas trunklines. This is especially important for the rural area, particularly in Eastern Siberia and the Far East.