Led by Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee, the Company’s delegation is finalizing its business trip to the Far East and the Transbaikal region.

Today Ulan-Ude hosted a working meeting between Alexander Ananenkov and Vyacheslav Nagovitsyn, President – Chairman of the Government of the Republic of Buryatia.

The meeting focused on the development prospects for gas supply to and gasification of Buryatia as part of the Eastern Gas Program implementation. In addition, the parties addressed the progress with the Agreement of Cooperation.

The parties pointed out that gasification would enable to stimulate the socioeconomic expansion in the region and to improve the environment in the Baikal region.

Subsequently the Deputy Chairman of Gazprom’s Management Committee and the President of the Republic of Buryatia held a meeting on the topical issues surrounding gas supply to and gasification of Buryatia.

Present at the meting were Vasily Podyuk, Member of the Management Committee, Head of Gas, Gas Condensate and Oil Production Department of Gazprom, Viktor Ilyushin, Member of the Management Committee, Head of the Department of Relationships with the Russian Federation Regions of Gazprom, heads and specialists from Gazprom’s core business outlets and subsidiaries (Gazprom invest Vostok, Irkutskgazprom, Gazprom transgaz Tomsk, VNIIGAZ, Promgaz, Mezhregiongaz, Gazprom pererabotka) as well as representatives of the Republic of Buryatia Government and Khurala (legislative body of the Republic of Buryatia).

Promgaz presented technical and economic calculations for the organization of gas supply to and gasification of the region. The creation of processing capacities in Buryatia for gas, gasoline and diesel fuel production is the main economically substantiated option as proposed by Promgaz.

The parties also addressed potential pipeline gas deliveries by the Skovorodino – Chita – Ulan-Ude gas transmission system to be created in future. This gas lateral may be connected to the Yakutia – Khabarovsk – Vladivostok gas transmission system.

Promgaz will continue the work aimed at revising the technical and economic parameters for the proposed options. In the near future specialists from Promgaz and the Republic of Buryatia Government together with representatives of gas consuming companies will take the pertinent joint actions.

Reference:

Gazprom and the Republic of Buryatia inked the Agreement of Cooperation in February 2008.

The Republic of Buryatia is not gasified with natural gas. The LPG supply level in the Republic makes up 13.3 per cent including 2.6 per cent in cities and towns, and 28.5 per cent in the rural area. Gazprom doesn’t supply LPG to the Republic.

The September 3, 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Program). Gazprom was named by the Russian Government as the Eastern Program coordinator.

Meeting gas demand of the Russian market is a priority and a basic principle of the Program.