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GAZPROM

January 19, 2006

Gazprom supplies substantial amount of extra gas during cold snap

During the cold snap on January 16-18 Gazprom supplied an extra 750 mln cu mof gas to Russian consumers, including 310 mln cum to the household sector.

The extra gas amount stemmed from 130 mln cu mand 630 mln cu min additional gas production and gas retrievals from UGS facilities, respectively.

To secure uninterrupted gas supply to the household sector, Gazprom started operating from 16 January under a schedule stipulating the conversion of Russian industrial consumers to standby energy sources (Schedule ?1). Subject to annual endorsement by regional authorities, Schedule ?1 obliges industrial consumers to have backup fuels during the autumn-winter heating season.

Applied under Article19 of the Regulations on Gas Supply in the RF, approved by the RF Government’s Directive ?162 from February 5 1998, Schedule ?1 prescribes partial conversion of customers to standby energy sources (fuel oil, peat, coal, etc.) to spare an amount of gas for meeting increased demand of the residential sector.

Conversion to backup fuels and their timely procurement is fixed in contracts with all industrial consumers.

Despite Schedule ?1 stipulates 211.5 mln cu mof gas being spared per day, industrial consumers have reduced gas consumption, switching to standby energy sources, by only 20 mln cu mof gas per day.

In the existing situation, when industrial consumers are virtually disregarding Schedule ?1, Gazprom compensates for the shortfall of backup fuels by 190 mln cu m in additional daily gas supplies and continues urging industrial consumers to operate strictly in line with Schedule ?1.

Under the exceptionally low temperature conditions the United Gas Transmission System of Russia proves steady when piping contractual and extra gas to domestic and foreign consumers.

Gas deliveries to Europe remain in line with existing transit contracts.

 

 

 

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