Saint Petersburg hosted today a working meeting between Alexey Miller and Georgy Poltavchenko, Governor of Saint Petersburg. The parties expressed a high opinion of the joint efforts made to develop a gas supply system in the city. It was noted that between 2002 and 2010 the total investments by Gazprom in gasification of Saint Petersburg only amounted to RUB 7.2 billion. On its part, the Saint Petersburg Government allocated RUB 7.1 billion for these purposes in the same period.

Alexey Miller and Georgy Poltavchenko signed an Agreement of Cooperation between Gazprom and Saint Petersburg Government for 2012.

Pursuant to the document, in 2012 Gazprom and Saint Petersburg will continue the joint efforts on comprehensive development of the gas distribution system in the city and its suburbs, construction and reconstruction of heat supply systems in a number of districts, construction of energy facilities as well as gradual execution of the Program for Gas Supply to Saint Petersburg over 2007 to 2015 with its potential extension until 2025. Gazprom and the Saint Petersburg Government will also elaborate and implement the activities aimed at gas saving and wider use of gas as a motor fuel.

The document envisages that in 2012 Gazprom will allocate RUB 2.5 billion for gasification of Saint Petersburg. The Company will arrange construction of the pipelines to supply gas to the Yuzhnaya, Pervomaiskaya and Pravoberezhnaya combined heat and power plants (CHPP) as well as the gas pipelines linking the Shosseinaya-2 gas distribution station (GDS) with the Yuzhnaya CHPP GDS, the 2nd Vostochnaya gas main with the Shushary industrial area, the Yuzhnaya CHPP GDS with the Pulkovo highway, and the gas pipeline linking the Shosseinaya GDS with the town of Petrodvorets.

The Company will also allocate funds for construction of the Lagolovo GDS, an interconnector between the Belousovo – Leningrad and the Kohtla – Yarve – Leningrad gas trunklines as well as a gas lateral to the town of Kolpino.

The activities will be carried on to construct and reconstruct heat supply facilities in the Petrodvortsovy, Central and Admiralteisky districts of Saint Petersburg. For these purposes Gazprom will yet allocate more than RUB 2.5 billion in 2012.

On its part, the Saint Petersburg Government will coordinate the consumers preparation for gas supply and render assistance in providing them with metering devices.

Background

Gazprom and the Saint Petersburg Government entered into an open-ended Agreement of Cooperation in December 2008.

Like in the previous years, in 2011 Gazprom fully met its obligations on the gasification facilities construction in Saint Petersburg and reconstruction of heat and power supply facilities in the city.

In 2011 Gazprom invested RUB 1.3 billion in the gasification of Saint Petersburg. The funds were allocated to construct 75.2 kilometers of the gas pipelines (as of December 1, 2011).

In 2011 Gazprom allocated RUB 3.1 billion for reconstruction of heat and power supply facilities in Saint Petersburg. These funds were used to complete the major part of the most ambitious project on reconstruction of the heat and power supply facilities – retrofitting of a 415 MW boiler house in the Petrodvortsovy district. To date, three boilers as well as 107.8 kilometers of heat, water and gas networks have been replaced. In addition, the reconstruction of 16 heat and power supply facilities has been completed in the Central and Admiralteisky districts of Saint Petersburg.