Gas Infrastructure Expansion

Gazprom pursues its considerable effort to help Russians connect to network gas and significantly improve the quality of life in cities, towns, and villages.

The reporting year saw 195 inter-settlement gas pipelines with a total length of 2,447 km built to ensure gas supplies to 50,600 houses and apartments along with 336 boiler houses in 412 localities,.

In 2024, it is planned to complete construction of 306 inter-settlement gas pipelines with a total length of 3,790,700 km to supply gas to more than 69,000 houses and apartments and 314 boiler houses in 700 localities.

2020 saw the gas supply and gas infrastructure expansion programs for 2021–2025 drafted and approved for 67 constituent entities of the Russian Federation. In 2022, 66 programs were updated. In 2022, programs through 2025 were developed and approved for the Republic of Tatarstan, as well as Sverdlovsk,Chelyabinsk and Kostroma Regions; the respective program for the Irkutsk Region was updated.

The Programs for 72 constituent Russian entities provide for the construction of:

• around 2,300 inter-settlement gas pipelines spanning 30,000 km;
• 5,500 intra-settlement gas pipelines with a total length of 36,600 km;
• 153 gas distribution stations.

In addition, they envisage for the construction or reconstruction of existing gas pipeline branches and upgrade of gas distribution stations.

The Gazprom Group is drafting the Gas Supply and Gas Infrastructure Expansion Program for 2025–2030 for the Murmansk Region. In the reporting year, the Company developed draft annual synchronization plans for 2024 gas infrastructure expansion, specifying the list and deadlines of the respective activities.

In furtherance of clause 8 of the List of Instructions of the President of the Russian FederationList of Instructions of Vladimir Putin, the President of the Russian Federation, No. Pr-914 dated May 5, 2023., PJSC Gazprom together with the executive authorities of the Republic of Buryatia, Trans-Baikal Territory, and Amur Region developed and approved roadmaps for gas infrastructure expansion in Buryatia and the Trans-Baikal Territory until 2032, and in the Tynda Urban District until 2027. Among other things, the roadmaps intended for Buryatia and the Trans-Baikal Territory provide for the drafting of gas supply development and gas infrastructure expansion programs for 2026–2032 based on the results of the preceding activities, including work planned for 2024–2025, namely, the update, coordination, and approval of the forecast fuel and energy balances of these regions, as well as the preparation of materials for updating the Master Plans for Gas Supply Development and Gas Infrastructure Expansion.

In the reporting year, we approved the Comprehensive Gas Infrastructure Expansion Plan for the town of Svobodny in the Amur Region, to bring gas to four local boiler houses in 2024.

Together with federal authorities, the Gazprom Group makes a consistent effort to improve laws so as to simplify and accelerate the construction of gas supply facilities and reduce project timescales and costs.

In 2023, the Gazprom Group took part in weekly meetings of the Moscow Region’s headquarters for the implementation of the Presidential Project titled Social Gasification for 2021–2025, as well as gas infrastructure expansion meetings held in seven regions of the North Caucasian Federal District, and interdepartmental regional working groups on the fuel and energy sector, as well as meetings of federal headquarters under the leadership of Deputy Prime Minister of Russia Alexander Novak.

The Gazprom Group coordinated the initiatives of the Group and regional authorities on gas infrastructure expansion and gas supply for 2021–2025. In the reporting year, we enhanced cooperation with regional headquarters, agreed upon plans for 2024, and ensured control over a social program of gas infrastructure expansion.

In the localities with existing gas supplies, the Gazprom Group carries out further work to lay gas pipelines up to property boundaries and boiler houses of healthcare and educational facilities free of charge.

Gazprom Gazifikatsiya is a single operator responsible for gas infrastructure expansion in 72 Russian entities and the Sirius federal territory. Regional gas infrastructure expansion operators were selected for 13 constituent entities. Relations between participants of the gas infrastructure expansion program are governed by the Russian Government's Decree No. 1550 dated September 13, 2021. This document defines the mechanism for financing the activities of regional operators and independent gas distribution organizations by a single operator.

In 2023, Gazprom Gazifikatsiya entered into agreements with gas distribution companies on financing additional gas infrastructure expansion. Joint efforts delivered the following resultsCumulative data from the start of additional gas infrastructure expansion to December 31, 2023.:

Under the instruction of the President of the Russian FederationInstruction of Vladimir Putin, the President of the Russian Federation, No. Pr-2067 dated October 30, 2022., the social program providing for the connection of gas equipment of citizens, healthcare and educational facilities to gas distribution networks in gas-supplied localities was made permanent. The single operator shall ensure the conclusion and execution of all additional gas infrastructure expansion agreements as respective requests are received.

In 2023, there were 872 requests from healthcare and educational facilities submitted through the single operator portal, of which 64% were accepted and the rest were rejected, mainly due to the lack of title documents for land plots and capital construction facilities. Gazprom Mezhregiongaz signed 442 agreements with social institutions, of which 223 were executed with gas infrastructure expanded up to their boundaries, and 73 agreements – with gas supplies launched.

Under the federal Clean Air project (part of the Environment national project), gas is supplied to private households. The authorities of the regions participating in the project provide targeted assistance to people wishing to get access to the gas infrastructure, either by reimbursing costs or paying for respective services. Air pollutants made by burning unintended materials, such as household waste, negatively affect both human health and the atmosphere. Provision of gas supply helps address the environmental problems of the regions participating in the Clean Air project.

Almost half of the participating cities and towns benefit from additional gas infrastructure expansion. In 2023, additional gas connection initiatives were run in Bratsk, Lipetsk, Magnitogorsk, Mednogorsk, Nizhny Tagil, Novokuznetsk, Omsk, Chelyabinsk, and Cherepovets.

In 2021–2023, as part of the additional gas infrastructure expansion in the cities and towns participating in the Clean Air project, more than 18,000 private households were provided with a technical possibility of being connected to gas supply, with over 10,000 households actually connected to gas.