Gazprom to build up UGS capacities beyond Russia

abarrelfullabarrelfull wrote on 11 Feb 2011 08:24
Tags: europe gas gazprom storage

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The Gazprom Management Committee found it expedient to build up underground gas storage (UGS) capacities beyond Russia to bring the aggregate working gas volume to at least 5 per cent of the annual export supplies before 2030 with a focus on establishing the Company's own UGS capacities.

Specialized subdivisions were tasked to continue executing the relevant investment projects.


As part of the strategy aimed at securing the reliability of gas export supplies to European consumers during peak demand periods or overhaul operations in the gas transmission system, Gazprom is building up the underground gas storage network in Europe that will also allow for extra gas marketing from gas storages.

The following results were achieved: between 2006 and 2010 Gazprom expanded its European UGS capacities from 1.4 to 2.5 billion cubic meters, thus increasing the daily send-out capacity from 18.2 to 30 million cubic meters.

For the time being, Gazprom is exploiting UGS capacities in Austria (stage one of the Haidach UGS facility) and is leasing them in the UK (Humbly Grove), Germany (Rehden and VNG-owned UGS capacities) and France (Vitol-owned UGS capacities).

The Company takes into account the following criteria for its UGS construction projects: location of a facility, its geological and engineering conditions and economic efficiency as well as acquisition of the appropriate permits from European regulatory bodies.

At present, Gazprom is engaged in the following investment projects:

Stage two of the Haidach UGS facility (Austria)

Before completion of stage two, the working gas volume of the Haidach UGS facility totals 1.3 billion cubic meters (2.8 billion cubic meters after the commissioning scheduled for April 2011).

Haidach secures the reliability of Russian gas export supplies towards Baumgarten as well as to consumers in Slovenia, Croatia, Hungary, Austria, Germany, Slovakia and Italy.

The Katharina UGS facility (Germany)

Gazprom is implementing the project in cooperation with VNG. Upon reaching the nominal capacity the UGS working gas volume will amount to 629 million cubic meters.

The Katharina UGS facility will assure reliable supplies to Western Europe, its marketing at the Malnow, Waidhaus, Gaspool and NCG hubs as well as deliveries via the Nord Stream gas pipeline.

The Banatski Dvor UGS facility (Serbia)

In October 2009 Gazprom and Srbijagas signed the Agreement on Setting Up a Joint Venture (JV) for the Banatski Dvor UGS Facility. The JV was registered in February 2010. The JV shareholding structure is as follows: Gazprom holds a 51 per cent stake and Srbijagas holds a 49 per cent stake.

The Banatski Dvor UGS facility will secure the reliability of Russian gas export supplies to Hungary, Serbia, Bosnia and Herzegovina.

The Bergermeer UGS facility (Netherlands)

The UGS facility is located in a strategic area and has a considerable working gas volume, of which Gazprom will get 1.9 billion cubic meters.

The Bergermeer UGS facility will maintain safe operation of the Nord Stream gas pipeline and reliability of gas supplies.

Successful execution of the said projects will enable Gazprom to materially build up UGS capacities in Europe, thus reaching 4.9 billion cubic meters of the aggregate working gas volume and 65.7 million cubic meters of the daily send-out capacity.

Moreover, Gazprom is performing the feasibility study of its possible participation in joint UGS projects in the Czech Republic, France, Romania, Belgium, UK, Slovakia, Turkey, Greece and other countries.

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