The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Oleg Kovalev, Governor of the Ryazan Oblast.

The parties discussed the implementation of the Agreement of Cooperation and the Accord on Gasification between Gazprom and the Ryazan Oblast.

Special emphasis was placed on the construction of the regional gasification facilities in 2009.

Background:

The five-year Agreement of Cooperation between Gazprom and the Ryazan Oblast Administration was signed in 2005, the Accord on Gasification – in 2003.

In 2007 the Ryazan Oblast was supplied with 4.8 bcm of natural gas. This year projected deliveries account for some 5.1 bcm of gas.

The Oblast consumers have no gas debt to Gazprom for the supplied gas. As of November 1, 2008 advanced payments totaled circa RUB 129 mln.

The average level of the Ryazan Oblast’s gasification accounts for 75.6 per cent including 90.2 per cent in cities and towns and 51.4 per cent in the rural area (the identical figures throughout Russia average 62, 67 and 44 per cent, respectively).

Between 2003 and 2007 Gazprom allocated in excess of RUB 1.3 bln to develop gasification in the Ryazan Oblast.

In 2008 Gazprom has earmarked RUB 450 mln of investments for these purposes. These funds will be used to design and construct 14 inter-settlement gas pipelines with a total length of some 232 km.