Today, at Gazprom's Headquarters, Alexey Miller, Chairman of Gazprom's Management Committee and Nikolai Denin, Governor of the Bryansk Region have signed a synchronized construction schedule for Regional gasification facilities.

In accordance with the schedule, the Bryansk Region will see a complex of activities aimed at preparing consumers for gas supply by Gazprom pipelines currently under sweeping construction as stipulated by the gasification program for RF regions over 2005 to 2007.

"The gasification program implementation is one of the most awaited events in many Russian regions. In this regard, it is important not to disappoint the people's expectations. Regional authorities should do their best to ensure that consumers are ready to receive gas immediately after Gazprom completes the construction of a local gas pipeline. This also refers to the Bryansk Region where our Company plans to lay 7 local pipelines in this year alone," noted Alexey Miller.

"We are ready to ensure the preparation of the Bryansk Region's consumers for gas supply. In accordance with the document signed, between 2006 and 2007 the Region will finance the construction of more than 60 km of in-settlement gas pipelines, conversion of 29 boiler plants to gas and gasification of over 1,500 households with more than RUR 120 mln to be channeled for these purposes," stressed Nikolai Denin.

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The synchronized construction schedule for gasification facilities identifies an activity list and implementation dates for gas infrastructure between 2006 and 2007, and is aimed at providing gas connections to consumers immediately after pipeline construction. To connect consumers, regional authorities are to construct local and household networks, build new or convert to gas existing boiler plants, install household gas appliances, etc.

These schedules are part of Gazprom's gasification program for RF regions over 2005 to 2007, which is funded with RUR 35 bln. Of this amount, RUR 5.2 bln was already committed in 2005 and not less than RUR 17.6 bln and RUR 12.2 bln is slated for 2006 and 2007, respectively. Extra RUR 1.1 bln will be allocated for the reconstruction and modernization of existing gas distribution pipelines.

At present the Russia-averaged gasification rate makes up 53 per cent including 60 per cent in cities & towns and 34 per cent in rural area.

Implementing the gasification program over 2005 to 2007 will help boost gas supply to Russian regions to a 60 per cent average by 2008 including 66 per cent in cities & towns and 42 per cent in rural area.

To achieve said targets, Gazprom will provide gas to 3,851 thousand apartments & households including 2,673 thousand in cities & towns and 1,178 thousand in rural area.

The Program will enable Gazprom to convert to natural gas about 20 thousand new residential facilities (hospitals, kindergartens, schools, etc.), over 5 thousand boiler plants in villages & settlements and more than 500 agricultural companies, with more than 12 thousand km of pipelines to be laid and some 11 mln citizens of 53 Russian regions to be serviced.

Gazprom's investment priorities for regional gasification are based on the following criteria: full payments for gas deliveries; repayment of gas debts; economic viability of projected gas infrastructure; customers' readiness to receive gas; actual loading of gas laterals and distribution stations; assistance of RF regional authorities in promoting the use of compressed and liquefied natural gas as motor fuel.

Gazprom and the Bryansk Region signed an Agreement on cooperation in May 2005.

The Bryansk Region is currently gasified by 72.6 per cent (90.2 per cent in cities & towns and 39.8 per cent in rural area).

Under its 2006 gasification program for RF regions, Gazprom intends to build 7 local gas pipelines in the Bryansk Region.

Over 2005 Gazprom has provided the Region with some 3 bcm of gas.