Gazprom to create conditions for supplying gas to almost 1 million households under existing gas supply and gas infrastructure expansion programs

The Gazprom Management Committee reviewed the prospects for the expansion of the gas supply and gas infrastructure network in Russian regions through 2030.

Gazprom is currently implementing the corresponding programs that cover the period until the end of 2025 and are in force in 72 constituent entities of the Russian Federation. Considering that the programs were signed mainly in 2020, an extensive work has been performed by now to update them taking into account the changes in the need for gas infrastructure in the regions.

As a result, the obligations of the Company have significantly expanded. The existing programs envisage the construction of 60,000 kilometers of inter-settlement and intra-settlement gas pipelines, which is 2.5 times more than it was planned in 2020. Conditions required for gas grid connections will be created for over 977,000 households and apartments (a 1.8-fold increase) and 4,700 boiler houses (a 1.6-fold increase) in 5,700 localities (a 1.6-fold increase). As before, the main efforts are concentrated in rural areas.

The implementation of the programs is well underway. The construction of gas infrastructure is proceeding in accordance with the approved schedules for 2023.

Active work on additional gas infrastructure expansion – i.e. on bringing pipeline gas to the boundaries of land plots at no cost to the population – continues within localities already covered by the gas grid.

As of today, Russian consumers have signed more than 847,000 contracts with regional gas infrastructure expansion operators. Out of the signed contracts, as many as 562,600 contracts (i.e. 67 per cent of the total number) have already been executed by bringing pipeline gas to the boundaries of relevant land plots.

In addition, the collection of applications for additional gas grid expansion to cover the boiler houses of medical facilities and educational entities is in progress starting from March 1, 2023. As of today, a total of 301 applications have been collected from said facilities and entities in 33 regions of Russia. The first contracts have already been performed.

The Management Committee reviewed the information about gas supplies to the Khabarovsk Territory from 2025, as well as to the Kamchatka Territory and the Kuril Islands.

In the Khabarovsk Territory, Gazprom continues the design development works for gas pipeline branches to switch the consumers of the Okha – Komsomolsk-on-Amur gas pipeline (not owned by Gazprom) to the Sakhalin – Khabarovsk – Vladivostok gas trunkline. The adjustment of the region's General Scheme for gas supply and gas infrastructure expansion has been performed to identify the demand for additional amounts of gas within the Territory. The document is under consideration in the Government of the Khabarovsk Territory.

Gazprom is working to expand gas infrastructure in the Kamchatka Territory. For instance, in the Elizovsky District, the linear part of the gas pipeline branch has been laid in place by now and the Razdolny gas distribution station (GDS) is being built. An inter-settlement gas pipeline has been built from said GDS to the settlement of Razdolny; an intra-settlement gas pipeline is being designed. Design development works are underway for gas distribution pipelines that will supply gas to six more settlements: Dvurechye, Krasny, Nagorny, Novy, Pionersky, and Svetly.

Design development works continue for the inter-settlement gas pipeline to serve the boiler houses of the Vilyuchinsky Municipality. The project is being implemented pursuant to the instruction of Russian President Vladimir Putin.

In addition to that, Gazprom is conducting a financial feasibility study for the off-grid gas supply project (based on the use of liquefied natural gas) for the consumers of the Kuril Islands.

The issues of the prospects for the expansion of the gas supply and gas infrastructure network in Russian regions through 2030, the provision of gas supplies to the Khabarovsk Territory from 2025, and the ongoing work for providing gas supplies to the Kamchatka Territory and the Kuril Islands will be submitted for consideration by the Gazprom Board of Directors.