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 UGS network in Europe that will also allow for extra gas marketing from gas storages.

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 has engaged in stage two of the Haidach UGS facility (Austria), the Katharina UGS facility (Germany), the Banatski Dvor UGS facility (Serbia) and the Bergermeer UGS facility (Netherlands).

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.

Will the move commercially benefit the firm?

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