Gazprom to reconstruct gas transportation system

On August 29, the executive board of the Gazprom gas holding adopted theComplex program for the Reconstruction and Technical Updating of gasTransport Facilities in 2002-2006. As the press service of the companyreported today, this program is basic for developing annual investmentplans. Reconstruction and technical updating of the gas transportationsystem is one of top-priority lines of investment activities of theholding, enabling it to decrease or eliminate the need in construction.The extent of Gazprom's gas pipelines is 154,900 kilometers. The holdingoperates 254 compressor stations and 22 underground gas storages. Onaverage, the age of gas pipelines is pushing 22 years. Such condition ofthe gas transportation system brings about a decrease in its reliabilityand flow capacity.According to the program, reconstruction of the system will coverpipelines, compressor stations, water and energy supply systems, electricand chemical protection of pipelines, automated management systems, remotecontrol and technologic communications.The implementation of the program is directly connected with the statetariff policy for natural gas. Heads of large companies producing oil andgas equipment, are ready to support Gazprom's program for a gradual tariffincrease.As Gazprom stressed, on the whole, the program for the reconstruction ofthe gas transportation system is aimed at providing uninterruptedtransportation of 530 billion cubic meters of gas according to the energystrategy of Russia; providing reliable gas supplies to the Blue Stream gaspipeline; fulfilling export contracts on gas supplies to Europe; increasingthe reliability of gas supplies to the south of Russia; providingtransportation for the gas of independent producers; and providing gasimports from Turkmenistan and Kazakhstan..

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