The Gazprom Headquarters today hosted a working meeting between Alexey Miller, Chairman of the Management Committee and Sergey Mitin, Governor of the Novgorod Oblast. The parties discussed the progress with the Agreement of Cooperation between Gazprom and the Novgorod Oblast Administration. In particular, the meeting addressed issues with regard to the regional gasification and the volumes of gas supplied to the Novgorod Oblast consumers.

Alexey Miller highly appreciated the results of the work done by the Oblast Administration on the gasification program. The parties agreed that Gazprom would increase investments in the Novgorod Oblast when adjusting the gasification program for the second half-year of 2008 and developing the 2009 program.

The parties also addressed Gazprom’s investment plans in power generation in the Novgorod Oblast.

Reference:

The Cooperation Agreement between Gazprom and the Novgorod Oblast was entered into in March 2005, the Gasification Accord – in May 2003.

In 2007 Gazprom supplied over 2.5 bcm of gas to the Novgorod Oblast and circa 3 bcm of gas is projected for the current year.

The Novgorod Oblast consumers have no gas arrears.

Natural gas penetration in the Novgorod Oblast averages 46.1 per cent including 64.8 per cent in cities & towns and 9.8 per cent in the rural area. The identical figures throughout Russia average 62, 67 and 44 per cent respectively.

Over 2002 through 2006 Gazprom invested RUR 213.6 mln in the Novgorod Oblast gasification. In 2007 the Company allocated 150 RUR mln to gasify the Oblast. These funds were used to construct one gas pipeline. This year Gazprom investments are scheduled in the same volume.