Today, at Gazprom’s Headquarters Alexey Miller, Chairman of Gazprom’s Management Committee and Valery Shantsev, Governor of the Nizhny Novgorod Region have inked a synchronized construction schedule for regional gasification facilities.

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

“During 2006 Gazprom will construct 4 gas pipelines between settlements in the Region. The Regional authorities have committed, on their part, to step up all necessary measures to deliver gas to consumers without any delay. The document signed today will help meet this challenge”, specified Alexey Miller.

“Over 2006 to 2007 the Nizhny Novgorod Region’s authorities plan to commit RUR 788 mln for the construction of gas pipelines within settlements”, said Valery Shantsev.

Reference:

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

Network schedules are signed to implement 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 level of gasification 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 already help boost gas supply to Russian regions to 60 per cent average by 2008 including 66 per cent in cities & towns and 42 per cent in rural area.

To achieve the 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 heating plants in villages & settlements and more than 500 agricultural companies, 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.

The Nizhny Novgorod Region is currently gasified by 68 per cent (81 per cent in cities & towns and 34 per cent in rural area).

Under its gasification program for RF regions in 2006 Gazprom plans to construct in the Nizhny Novgorod Region six local gas pipelines with a total length of over 98 km.

In 2005 Gazprom provided the Region with some 7.9 bcm of gas.

Gas is being supplied to Regional consumers by Nizhny Novgorod Energy Company, which is a subsidiary of Mezhregiongaz.