Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Oleg Bogomolov, Governor of the Kurgan Region have inked an Agreement on cooperation and a synchronized construction schedule for regional gasification facilities.

In accordance with the schedule, the Kurgan 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.

“The Kurgan Region’s gasification level is one of the lowest among RF regions standing at only 18 per cent. I believe therefore that the Region’s authorities must pay special attention to this issue. The priority here is to deliver gas to consumers and first of all to the population immediately upon completion of local pipelines being constructed by Gazprom. In other words, the Region’s authorities will have to do their best in promoting local grid construction and assisting the population to install required household gas appliances”, said Alexey Miller.

“We are ready for intensive work. The Region’s citizens will start receiving gas according to schedule. Between 2005 and 2007 the Region’s leadership plans to commit RUR 500 mln for constructing local gas pipelines. I will take under my personal control the preparation of consumers for gas supply”, emphasized Oleg Bogomolov.

Reference:

The Agreement on cooperation between the Kurgan Region’s Government and Gazprom (the previous agreement was signed in February 2000) stipulates promoting the following major joint businesses:

• Gasification of population centers;
• Maintaining sustainable gas supply to population and state-financed companies;
• Investigating the opportunity of creating an integrated gas distribution company;
• Expanding the use of compressed & liquefied natural gas as motor fuel;
• Ensuring environmental safety & security and rational nature management.

A synchronized construction schedule for regional gasification facilities identifies an activity list and implementation dates for gas infrastructure between 2006 and 2007. The schedule 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.

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 help boost gas supply to Russian regions to a 60 per cent average by 2008 including to 66 per cent in cities & towns and 42 per cent in rural area.

To achieve said targets, Gazprom will supply 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 living in 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 Kurgan Region is currently gasified by 18 per cent (29 per cent in cities & towns and 2.6 per cent in rural area).

Under its gasification program for RF regions in 2006 Gazprom plans to construct in the Kurgan Region six local gas pipelines with a total length of over 127 km.

In 2005 Gazprom provided the Region with more than 300 MMcm of gas.