Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Nikolai Shaklein, Governor of the Kirov Region have signed a network schedule for gas supply infrastructure construction in the Kirov Region.

Under the documents signed, the Regional authorities will be responsible for synchronizing the preparation of consumers for gas deliveries (the preparatory process includes constructing local and household networks, building new or converting to gas existing boilers, installing household gas appliances, etc.) with the pipeline construction by Gazprom. The network schedule identifies an activity list and implementation date for gas infrastructure between 2006 and 2007, and is aimed at providing gas connections to consumers immediately upon pipeline completion.

Network schedules are signed for the implementation of Gazprom’s Program on gas supply to the RF regions over 2005 to 2007, with RUR 35 bln earmarked to this end for 53 constituents of the Russian Federation.

On signing the network schedule, Alexey Miller pointed out: “Improving the quality of life by gas connections to rural settlements and households is only possible with the active involvement of regional & local authorities strictly fulfilling their obligations under the network schedules signed.

Gazprom, on its part, guarantees thorough implementation of all its Program commitments. In the next two years we will bring gas to an unprecedented quantity of localities. I am sure that the regional authorities will do their best to prevent gas pipelines from staying idle because of the unpreparedness of consumers for gas shipments.”

The Chairman of Gazprom’s Management Committee also emphasized that Russian citizens and local & regional mass media had the right to take under public control the entire process of preparing regional consumers for gas deliveries. “The problems hampering the gas supply process should be in the public spotlight,” said Alexey Miller.

“Further construction of gas facilities and, thus, expanded supplies are of big socioeconomic significance for the Kirov Region. First of all, it’ll foster better life quality and give us an opportunity to develop production and generate new jobs. Natural gas will give a strong impetus for the Regional development,” said Nikolai Shaklein.

“I’ am positive that the Kirov Region will be ready for prominent gas deliveries and its authorities will do their best to fulfill the network schedule signed,” stressed the Governor.

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The present-day Russia-averaged level of natural gas supply accounts for 53 per cent including 60 per cent in cities & towns and 34 per cent in rural area.

Between 2005 and 2007 Gazprom plans to commit RUR 35 bln for constructing gas infrastructure and supplying gas throughout the Russian Federation, with including RUR 5.2 bln already channeled for these purposes in 2005 and not less than RUR 17.6 bln and RUR 12.2 bln slated for 2006 and 2007, respectively. Extra RUR 1.1 bln will be allocated for the reconstruction and modernization of existing gas distribution pipelines.

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

To achieve said targets, Gazprom will deliver gas to a further 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 household institutions (hospitals, kindergartens, schools, etc.), over 5,000 heating boilers in villages & settlements and more than 500 agricultural companies, with an excess of 12,000 km of pipelines to be laid and some 11 mln people to be serviced.

Gazprom’s investment priorities for regional gas supply will be determined 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.

Over 2005 Gazprom furnished the Kirov Region with 2,223 mln cu m of gas. Last year the Region fully repaid its gas debt to Gazprom. The Regional gas supply infrastructure is developed by 25.8 per cent of maximum demand, including by 35.6 per cent in cities & towns and 3.8 per cent in rural area.