A working meeting between Alexey Miller, Gazprom’s Management Committee Chairman and Vladimir Torlopov, Head of the Republic of Komi, was held today at Gazprom’s Headquarters.

A. Miller and V. Torlopov examined issues regarding the construction of the Tyumen Region’s Northern Areas (TRNA) – Torzhok gas pipeline in the Komi Republic. The parties decided to produce a Protocol highlighting the Owner (Yamalgazinvest) and the Contractor’s (Government of the Komi Republic) obligations.

The meeting addressed the issues of upgrading the Mikun – Syktyvkar gas pipeline and of constructing an additional line to this gas pipeline in 2004-2005.

At the same time, the parties discussed current gas deliveries to the Republic and decided that the Promgaz company together with the Government of the Komi Republic would devise a Program on power and fuel supplies to the Komi Republic for 2004-2010 and up to 2020.

A. Miller and V. Torlopov also considered the issues of building up the resource base of Severgazprom, a Gazprom subsidiary, which is carrying out its activities in the Komi Republic. The parties pointed out that Severgazprom was planning to significantly increase the scope of prospecting and hydrocarbon feedstock production, particularly, along the projected route of the Yamal-Europe gas pipeline. The parties reached an accord that the Government of the Komi Republic would assist Severgazprom in resolving the licensing-related matters.

The meeting decided to fix main accords reached by the Parties in an amended Agreement between Gazprom and the Government of the Komi Republic.

Reference:

Gazprom and the Republic of Komi signed the 5-year Cooperation Agreement on 8 December 1999.

In 2003 the Republic of Komi received over 3.2 bcm of gas.

For the time being, gas is delivered to 40.5% of the Republican territories (against Russia-averaged of 52.7%).

In 2004-2006 Gazprom plans to construct the TRNA – Torzhok gas pipeline in the Republic. Total length of this pipeline will average 1,600 km, including 320.5 km in the Komi Republic. 36.5 km of the pipeline are planned to be laid in 2004, 95.5 km, in 2005 and 188.5 km, in 2006.

The Mikun – Syktyvkar gas pipeline was brought into operation in 1971 for delivering gas to the consumers of the Syktyvkar industrial companies and the city of Syktyvkar. At present, this pipeline needs to be upgraded.

Current gas payments by the consumers of the Komi Republic account for over 92%.

The Republican consumers’ gas debt grew more than RUR 54 million within January and February this year and, as of March 1, exceeded RUR 102 million.

DIVISION OF RELATIONS WITH MASS MEDIA