1. APPROACHES TO ECOLOGICALLY EFFICIENT GAS USE IN THE REGIONS OF THE RUSSIAN FEDERATION
V.E. Zamergrad
Director
Research and Technical Center “Fuel and Energy Complex Development in the Russian Regions”
Brussels
June 2011

2. JSC “Gazprom promgaz”
Gazprom head scientific center in substantiating energy policy in the regions; gas supply, distribution and utilization; energy saving; development of small field and coalbed methane resources
General Designer of the Programme of Connecting Russian Regions to Gas Supply as is implemented by Gazprom
Leading Russian R&D and engineering company in the field of regional energy economy
Considerable scientific and human resources potential (over 800 employees, 46 Doctors of Science and 114 Candidates of Science)
17 representation offices (St. Petersburgh, Irkutsk, Krasnodar, Tomsk, Ukhta, Kemerovo, Vladivostok, Kamensk-Shakhtinskiy, Novokuznetsk, Orel, Astrakhan, Stavropol, etc.)
Business activities in 80 federal entities of Russia

3. Primary energy consumption
Gas consumption in the Russian Federation in 2009
Primary energy consumption
Gas consumption
(403,9 bln. m3 / year)*
АЭС, ГЭС и ВЭС - Nuclear, Hydro and Wind power
Прочие - Other
Уголь - Coal
Нефть, вкл. Газовый конденсат - Oil, incl. gas condensate
Газ -Gas
Коммунально-бытовой сектор - Domestic sector
Промышленность - Industry
Сельское хозяйство - Agriculture
Прочие потребителе, в т.ч. Теплоэнергетика -Other consumers, incl. heat power engineering
* Including transport by pipelines 3 3

4. Major approaches to reducing atmospheric emissions
Approaches to ecologically efficient gas use in the Russian Federation Regions
Major approaches to reducing atmospheric emissions
Developing gas supply and distribution first of all in the environmentally neglected regions
Making use of pressure difference at gas distribution stations and points to generate electric power
Implementation of energy conservation set of measures when organizing gas supply and distribution
Integrated development of electricity, heat and gas supply as based on innovative technological solutions
Use of gas to fuel vehicles
Biogas production and use 4

5. Programme of connecting Russian Regions to gas supply
It aims at providing consumers with natural gas as most reliable and environmentally friendly fuel
Gazprom investments in the Russian regions gas supply organization amounted in to 90 bln. RUR. Over 25 bln. RUR were additionally assigned for the programme implementation in 2010.
Gas supply and distribution schemes for 71 regions of the Russian Federation are developed, spur gas distribution lines extending to 14,2 ths. km are built, over 583 ths. apartments and 529 industry enterprises are connected to gas supply; over 3 ths. boiler houses are switched from coal and fuel oil to natural gas.
Average level of installed gas service increased by 9% to 63%, raising in the urban area to 67,5%, in the rural – to 45,5%
Greenhouse gases emissions reduced by 9,6 mln. t of СО2 5

6. Connecting Russian Federation regions to gas supply
Connecting Russian Federation regions to gas supply. East Siberia and Far East.
60% of the Russian Federation territory, 14 federal entities, ,7 ths. sq. m, 14,9 mln. people
Prevailing fuels are fuel oil and coal
Current level of installed gas service– 7% (All-Russian index - 63%)
Gas consumption– 18,8 bln. m3 (accounting for gas consumed at the Sakhalin LNG plant) or 4,7% of All-Russian consumption
In some 30,1 bln. m3 of gas will be supplied additionally. Environmental effect of substituting coal with gas includes emission reduction by 1,3 mln. t 6

7. Priority ways of connecting East Siberia and Far East to gas supply
Use of new gas-steam thermal power stations and condensation power stations;
Converting coal power stations to gas in the environmental emergency areas;
Converting coal-fired boiler-houses to gas in the environmentally unsafe areas;
Using gas to fire industrial processes and as gas chemistry feedstock;
Residential consumer gas supply. 7

8. Autonomous supplying of consumers with liquefied natural gas
Connecting to gas supply far-away regions
Reservation systems
Development of gas vehicle infrastructure
NG( min 2,5 МPа)
LNG storage
Evaporators
Methane liquefaction plant
to consumers 8

9. Autonomous supplying of consumers with liquefied natural gas
Хабаровский край
Многовершинный
Feasibility studies of LNG, LPG plants
construction are developed, design works
are underway
Khakasia Republic
Sakha Republic (Yakutia)
Perm Territory
Dagestan Republic
Buryatia Republic
Altay Territory
Tyiva Republic
Kurgan Region
Perspective consumers
Gas-filling station
LNG production plant 9

10. Using natural gas to fuel vehicles
In the last 15 years gas vehicle fleet increased 9-fold
CNG sales in Russia make some 360 mln. cub. m.
CNG fleet (fueled by compressed natural gas) is 104,2 ths. vehicles
Automatic compressor station gas fillers amount to 246 units (of which 212 are owned by Gazprom).
In 2007 “Target Integrated Programme of Developing Gas Filling Network and Gas Vehicle Fleet in ” was approved, envisaging:
Construction of another 200 automatic compressor station gas fillers in the Russian regions;
Increasing by 50 ths. units the fleet of natural gas vehicles;
Ensuring gas filling availability at all federal and regional motor routes
Raising CNG sales in Russia to 700 mln. cub. m per annum.
Scheduled environmental effect includes substitution with gas of some 500 ths. t of liquid motor fuel and yearly reduction of СО2 emissions by 320 ths. t 10

11. Perspectives of gas saving in the Russian Federation, mln. cub. m
29620
27%
Industries and economic branches
Natural gas consumption (2008)
Economically feasible opportunities of natural gas saving (release)
bln. m3
% of consumption
mln. m3
Total
413,1
100,0
109715
26,6
Electric power engineering
165,0
39,9
46200
28,0
Industry, total, incl.
123,7
30,0
31270
25,3
Oil and gas industry
42,0
10,2
8820
21,0
Metallurgy
28,5
6,9
8560
Agrochemical industry
20,8
5,0
5200
25,0
Cement industry
6,8
1,6
2200
32,0
Defense industry
2,5
0,6
450
18,0
Petrochemical industry
8,9
2,2
1970
22,0
Ministry of Defense
1,4
0,3
220
16,0
Agricultural machine building
3,5
0,9
700
20,0
Agro industry
9,3
3150
34,0
Domestic consumption
31,8
7,7
12100
38,0
Residential consumption
49,4
12,0
9400
19,0
Other consumers
43,2
10,4
10745
35115
32%
44910
41%
Perspective release of natural gas due to direct saving
Perspective natural gas release due to electricity and heat saving
Perspective substitution of natural gas with other
fuels (nuclear, coal, etc.),
incl. unconventional ones 11

12. % of the regional consumption
Perspective gas saving in the Russian Regions (based on General Schemes of Organizing Gas Supply and Distribution data)
Region
mln. m3
% of the regional consumption
Kirov Region
1010
28,8
Krasnodar Territory
2236
23,5
Sverdlovsk Region
3360
18,0
Kemerovo Region
940
25,3
Tomsk Region
703
25,4
Leningrad Region
1513
27,4
Chechen Republic
154
11,8 12

13. Integrated development of electricity, heat and gas supply systems
Moscow Energy Strategy for the period up to 2025 and General Scheme of Moscow gas, heat and electricity supply (Designed by JSC “Gazprom promgaz”)
Key principles:
Raising reliability and quality of Moscow consumers energy supply
The Moscow fuel and energy complex comprehensive development as is coordinated with the Moscow Region fuel and energy complex progress, ensuring efficient social and economic development and environmental issues resolving
Extending combined heat and power production based on state-of-the-art technologies
Facts about Moscow:
11,5 mln. people
Prevailing fuel – natural gas (over 90% of the boiler and furnace fuel balance)
30 bln. m3 gas/year 13

14. Raising efficiency of gas and energy use
Raising efficiency of gas and energy use. The City of Moscow Energy Strategy
Extending combined heat and power production
Development and reconstruction of gas supply systems
Backing-up in networks and sources due among other factors to stationary and mobile spare capacities
Dispensing with counter flows of gas and electricity
Operating power stations development and technical re-equipment based on heat and power plants, provided increase of fuel use efficiency coefficient up to 80-85%
Providing for peak demand by constructing gas turbine plants on the base of district and quarter heat boiler-houses and by developing hydroelectric pumped storage power production in the Moscow Region
Decrease of the heating system heat losses
Increase of consumer energy use efficiency 14

15. Effect of Moscow Energy Strategy Implementation
Gas consumption
Fuel saving
In 2020 fuel saved due to energy saving implementation will make 13,8 mln. tce/year
СО2 atmospheric emissions reduction by 22 mln. m3 15 1 15 15

16. Use of gas pressure difference at the gas distribution stations to produce electricity
Turbine expansion engine power units ТДЭА & ТДЭА
Designer: JSC “Gazprom promgaz”
Key technical parameters:
-Capacity, kW
-Voltage, V
-Frequency, Hz
-Gas pressure
-inlet, MPa ,5 - 1,2
-outlet, Mpa , ,3
-Rotation frequency, min
-Gas consumption, m3/h
-Weight, kg
Yearly demand for turbine expansion engine power units to equip constructed and reconstructed Gazprom gas distribution stations is units. Provided capacity factor of 0,6, some 1,8-2,2 mln. kW-h will be generated per annum.
СО2 atmospheric emissions reduction by 0,7 mln. m3 16

17. Use of biogas and other renewables
Implementation of biogas production pilot projects is the study issue on the agenda of Gazprom R&D cooperatation with European energy companies.
Concept of Gazprom contribution to renewable energy projects was developed
The Concept aims at:
Improving quality of consumer supply (specifically decentralized supply) with fuel and energy
Using renewables to enhance regional energy safety indices
Development of proprietary renewables-based state-of-the-art energy technologies and entering new energy market segments
Facilitating solution of global ecology issues 17

18. Thank you for attention!
6, Ulitsa Nametkina,
Moscow, , Russia
Tel: +7 (495)
Fax: +7 (495)