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Since early 2021, conditions for connecting consumers to gas in 167 rural communities – which is more than in all of last year – created by Gazprom

Background

In 2020, Gazprom and 67 Russian regions signed gas supply and gas infrastructure expansion programs for a new five-year period, i.e. for 2021–2025. The amount of financing channeled by Gazprom is 2.9 times higher than that in 2016–2020. Over two-thirds of the investments will be provided to rural areas.

As per the list of instructions of Vladimir Putin, President of the Russian Federation, dated May 31, 2020, gas infrastructure expansion in Russia is to be completed in a stepwise manner by 2024 and 2030, and residential consumers must not bear any expenses for the connections to gas distribution networks.

On April 30, 2021, the Russian Government, in line with the instructions of the country’s leadership, approved the Action plan (roadmap) for the implementation of a socially-oriented and cost-effective system of gas infrastructure expansion and gas supplies to serve the needs of the constituent entities of the Russian Federation. Among the significant novelties provided for by the document is the introduction of the role of a “single operator of gas infrastructure expansion.”

In June 2021, a number of important amendments were introduced into Federal Law No. 69-FZ on Gas Supplies in the Russian Federation. In particular, the concepts of a single operator of gas infrastructure expansion and a regional one were established in said document. The Russian Government was vested with the authority of designating the single operator of gas infrastructure expansion, schemes of cooperation between the parties to gas grid expansion activities, and oversight schemes for the works.

In July 2021, the Russian Government appointed Gazprom Gazifikatsiya (established by Gazprom Mezhregiongaz and Gazprom Gazoraspredeleniye) as the Single operator of gas infrastructure expansion and approved the list of territories falling under the purview of said Single operator, which includes 66 constituent entities of the Russian Federation and the Sirius federal territory.

The Single operator will build gas pipeline branches, gas distribution stations, inter-settlement gas pipelines, and gas distribution networks up to the boundaries of land plots, thus making it possible to synchronize to a great extent the construction of gas infrastructure expansion facilities, achieve a considerable optimization of the construction costs, and significantly reduce the time required for connecting consumers to gas supply networks.

In September 2021, the Russian Government approved the regulatory acts pertaining to additional gas grid expansion. The documents outline, inter alia, the rules for connecting households to gas distribution networks as part of additional gas grid expansion efforts, the procedure for consumer engagement, and the timelines of this program. The appropriate legislative changes were developed taking into account the proposals put forward by Gazprom.

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