Underground gas storage (UGS) is an important part of Russia’s unified gas supply system. It assists reducing peak loads on deposits, and providing flexibility and reliability of gas supplies. Mentioning UGS, experts mean not only natural gas, but also hydrogen, methane, hydrocarbon, and biogas. Their storage is especially important because of development of hydrogen and green energy in Russia, with urgency of reducing greenhouse gas emissions. And here a number of problems arise.

The report of Nikolay Lugovsky, Deputy Chief Engineer, Head of the Production Department of Underground Gas Storage at «Gazprom Transgaz Belarus», was devoted to storing gas in the form of salts. This is the company’s own development. According to the expert, given the difference between the cost of using foreign technology (143 million rubles) and the cost of using their own one (30.9 million rubles), the savings in capital investments for 15 operating wells in prices of 2021 amounted to about 1.6 billion rubles.

The Conference participants talked a lot about challenges for the UGS industry in terms of developing the renewable gases market. So, according to Maria Khaidina, Associate Professor of the Department of Development and Operation of Gas and Gas Condensate Deposits at I.M. Gubkin Russian State University of Oil and Gas, joint transportation of natural methane and methane obtained from biogas produced increases risks of deterioration of quality of gas subsequently extracted from UGS. This has been confirmed by results of scientific observations and research. The results of other scientific experiments were shared by Leila Abukova, Head of the Laboratory of Oil and Gas Geofluidodynamics at the Institute of Oil and Gas Problems of the Russian Academy of Sciences, Vera Khvostova, Deputy Head of the Laboratory of Forecasting and Unevenness of UGS at «Gazprom VNIIGAZ» LLC, and others.

In turn, Nikita Barsuk, Head of the Department at “Gazprom” PJSC, raised the issue of problems related to producing hydrogen as the energy source. He recalled that producing green hydrogen to replace only 25% of the global energy basket will require more electricity than the world produces today from all sources combined. «And investments in establishing the production, storage and transportation infrastructure can amount to tens of trillions of US dollars», he stated. The expert also noted that the use of the existing natural gas transportation system for hydrogen transportation is impossible without additional research and development of special materials, equipment, and standards.

«The only tool to provide stable supplies of hydrogen to consumers and, consequently, ensure their energy security, are specialized underground storage facilities», noted Nikita Barsuk.

This thesis was supported by Anton Sokolov, an expert of the working group of SONO «Russian Gas Society» on international markets and analytics. According to him, in the USA, separate pipelines has been built since the 1990s, for example, for carbon dioxide (CO2). This is also relevant for Russia, where the use of CCUS technologies should reduce decarbonization of the economy. CCUS (Carbon Capture, Utilization and Storage) include capturing carbon dioxide CO2 during fuel combustion or in industrial processes, transporting it through a pipeline, or using it as the resource for creating valuable products or services, or permanently storing it deep underground in geological formations.

The expert separately noted that at the stage of formation of this market, a large role is assigned to the state, since the initial costs are quite high, investments are long-term, and therefore their return is low. He considers that such a market cannot do without the state’s support. However, legislative barriers, not only in the Russian Federation, but also all over the world, can hamper development of CCUS projects if they are not adjusted today.

«A more balanced approach to the market regulation is required», believes Anton Sokolov.