On February 26, Gazprom’s delegation headed by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee, took part in a joint meeting of the Council of the RF Siberian Federal Region (SFR) and the “Siberian Agreement” Inter-Regional Association. The meeting was held in the town of Belokurikha (Altai Area).

Governors and heads of legislative assemblies from 16 RF administrative territories discussed hurdles and prospects for gas deliveries to eastern Russia.

Presenting a program-oriented report, A. Ananenkov informed the participants of Gazprom’s attitude, as coordinator in establishing the united East Siberian and Far Eastern gas production, transmission and supply system, towards the prospect for developing hydrocarbon fields in the Irkutsk and Krasnoyarsk regions, Evenkia, Yakutia and Sakhalin as well as towards implementing gas pipeline laying and export-related projects interrelated with these prospects.

By 2020 annual gas extraction in Eastern Siberia and the Far East is scheduled to reach 100 bcm. In A. Ananenkov’s words, the bulk of the gas withdrawn in eastern Russia should reach domestic consumers. Gas export should be carried out from the most remote and hardly accessible fields and be marketed through an integrated export channel, fostering that pricing advantages be available for Russian consumers.

“If we fail to maintain a comprehensive approach to exploiting the East Siberian and Far Eastern gas resources, Yakutia’s fields will remain undeveloped for ever. In addition, the Siberian economy and population won’t receive eco-friendly ‘blue fuel’,” – stated A. Ananenkov.

Addressing the meeting, Deputy Chairman of Gazprom’s Management Committee drew attention of regional leaders to the ecological aspect of constructing and operating gas mains that needed to be laid through Eastern Siberia and the Far East. A. Ananenkov paid special attention to the necessity to withdraw helium from gas extracted in Eastern Siberia as well as to design capacities on complete natural gas processing, which will allow to manufacture products with high added value.

Alexander Karasevich, Promgaz’s director general, drew everybody’s attention to the need to use all local fuel resources as well as to apply alternative ways of transmitting natural gas to consumers (by road and rail, in liquefied and compressed condition) while elaborating comprehensive energy saving programs in each Russian region.

The participants also discussed possible sources of financing the programs on gas deliveries to eastern Russia, including introduction of purpose-oriented gas supply investment surplus while selling gas in the regions supplied with gas already.

At the same time, regional heads pointed out that the Siberian gas market would eventually become as much investment-attractive as the foreign one.

Leonid Drachevsky, the RF President’s authorized representative in the SFR, said that full-scale gas deliveries to Siberia were one of the top priority directions in Russia’s strategy to economically develop Siberia, approved by the RF Government in June 2002. Secure gas supplies to the region should positively influence, primarily, the metallurgical and chemical industries, power and housing sectors of the SFR.

At the end of the meeting the Siberian Agreement members decided to shortly sign a memorandum with Gazprom for backing the Draft program (to be slightly amended based on the proposals arisen during the meeting) on establishing the united East Siberian and Far Eastern gas production, transmission and supply system, with implication for possible gas exports to China and other countries of Asia Pacific.

DIVISION OF RELATIONS WITH MASS MEDIA