Gasification level in Russia far exceeds EU countries - Novak

MOSCOW. July 13 (Interfax) - The level of gasification in Russia reached 72% in 2021 and will continue to rise and the country's energy balance is one of the greenest in the world, while the rate of gasification in European countries is far lower, Deputy Prime Minister Alexander Novak said in an article in the Energy Policy journal.

He recalled that there are plans to invest almost 800 billion rubles in gasification in Russia in 2021-2025, bring gas services to more than 3,600 population centers, convert more than 3,200 boiler houses to gas and build more than 24,000 km of inter-settlement gas pipelines. This will make it possible to lift the level of gasification in the country to 75%. The aim is to bring the figure up to 83% by 2030.

"By already achieved gasification indicators, Russia significantly surpasses European countries such as Germany (47%), France (38%) and Spain (32%). For comparison, in Finland, Sweden and Norway, where the climate is similar to our country, the level of gasification is just 3%, 1% and 0.2%, respectively," Novak said.

He expressed surprise that "European countries consistently make decisions to deliberately refuse Russian gas, which until recently accounted for about 45% of imports."

"For example, the Nord Stream 2 gas pipeline with capacity of 55 billion cubic meters of gas per year has been frozen for political reasons on the initiative of the European side. Such decisions are made contrary to common sense, economic rationale, as well as the interests of the economies and citizens of Europe, who are deprived of the opportunity to receive sufficient amounts of gas at an affordable price," Novak said.

He recalled that a decision has already been made that Russian overland gas transport infrastructure for the Nord Stream 2 project will now be used to develop gas supplies to regions in Northwest Russia, where "gas main indicators - 57.3% - still lag behind the Russian average."

"In addition, the president of Russia has given instructions to expand the gasification program in the updated Energy Strategy to 2050. Among other things, this refers to a number of regions in Eastern Siberia and the Far East. The population of these regions totals more than 8.6 million people. The potential amount of gas consumption in them could reach 30 bcm per year, and the level of gasification of regions in the Far East could more than double (compared to the 2020 level) by 2035," Novak said.

Particular attention here will be devoted to gasification of industrial consumers and population centers along the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok gas pipelines, which will reduce consumption of fuel oil and diesel fuel and thus reduce harmful emissions, he said.

The implementation of major investment projects in Eastern Siberia and the Far East calls for the reconstruction of existing gas supply sources and construction of new branch pipelines and gas distribution stations, Novak said. In order to bring gas to population centers within a radius of up to 300 km from the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok pipelines, production of liquefied natural gas (LNG) might be set up at gas distribution stations on branch pipelines.

"The economic feasibility of the project is now being studied, along with possible measures of state support. It is anticipated that the development of small-scale LNG in the south of Primorye and on Sakhalin will make it possible to ensure the gasification of population centers on the coasts of the seas of Japan and Okhotsk, as well as use LNG for fueling marine vessels," Novak said.

He also recalled that the last-mile program to bring gas to private homes in population centers that already have piped gas is supposed to be completed by 2023. Potential financing for it could exceed 400 billion rubles, he said.

"As of the end of June, more than 634,000 applications are already in the pipeline. The number of submitted applications has almost doubled compared to last year. More than 416,000 contracts have been signed and gas has been brought to the property lines of more than 157,000 households. About 2 million households in more than 36,000 population centers could potentially be connected to gas. As of today, the schedule for final gasification includes 1.2 million homes," Novak said.

He also said that annual consumption of methane in transport amounted to 1.37 bcm as of the end of 2021, and this figure is expected to increase to 1.71 bcm in 2022 and to 6.8 bcm by 2030.

The government is also subsidizing the construction of compressed natural gas fueling infrastructure and conversion of transport to gas, a program to support construction of LNG filling stations is in the works, and subsidies are being considered for construction of mini LNG plants, foremost along international transport corridors.