OREANDA-NEWS. May 28, 2008. The Business Processes Enhancement in Gas Distribution and Utilization Conference started in Saint-Petersburg today. The Conference is held within the 12th International Specialized Exhibition of Natural Gas Industry and Technical Means for Gas Facility, Rus-Gas-Expo-2008.

Valery Matyushechkin, Deputy Head of the Gazprom Gas Transportation, Underground Storage and Utilization Department delivered a speech at the Conference.

The speaker pointed out that the creation of a united vertically integrated system for the gas distribution complex management within the Gazprom Group enabled to pursue a consolidated technical policy in the gas distribution field, to settle the financial performance of gas distribution companies (GDC) constituting the Group as well as to increase the reliability of gas supplies to consumers. “Gas distribution is a major Gazprom activity today. Natural gas is delivered to over 59 mln of Russian citizens via the Company’s gas distribution networks,” he stated.

Valery Matyushechkin said that Gazprom had elaborated and was implementing an Integrated program for reconstruction and technical re-equipment of the gas facilities between 2004 and 2008. While in 2006 Gazprom allocated RUR 1.1 bln to support the Program, in 2007 this figure made up RUR 1.5 bln.

Gazprom has been working on introducing new technologies for reconstructing and constructing gas distribution networks. Due to Gazprom’s cooperation with Russian producers, a competitive domestic market of technology and equipment has been developed in the gas industry. In this way, 95 per cent of gas regulating equipment purchased for Gazprom’s gas distribution companies are produced in Russia.

The speaker drew the meeting’s attention to the required installing gas metering devices while connecting new consumers to the network natural gas by Gazprom. Nowadays, each third apartment receiving natural gas is equipped with such devices. 2.69 mln of metering devices were installed by Gazprom between 2005 and 2007.

Valery Matyushechkin underscored that today it was the time to transit from the prompt elimination of causes affecting the gas supply reliability to the comprehensive approach to gas distribution networks development. The speaker defined five main areas of such development – improvement of regulatory environment, management of the GDC business processes, technical level of gas distribution systems as well as personnel training and development system. “The personnel training issue demands a very close attention considering the ongoing work and prospects for Russian regions gasification, including Eastern Siberia and the Far East,” he announced. The speaker pointed out that the length of projected distribution gas pipelines in eastern Russia could total from 20 to 32 thousand km.

Summing up his speech, Valery Matyushechkin announced that Gazprom was planning to prepare in 2008 a set of strategic documents in the area of gas distribution development, including the Concept of GDC production processes improvement, the Concept of gas distribution systems technical development, the Comprehensive program for the reconstruction and technical re-equipment of the Gazprom’s gas facilities over 2009 to 2012. In addition, the Company is planning to elaborate a package of Gazprom’s standards providing for the introduction of modern technologies for gas pipeline reconstruction and general programs for the GDC staff vocational training.