A working meeting between Alexey Miller, Gazprom’s Management Committee Chairman and Valentina Matviyenko, St. Petersburg’s Governor, was held today at Gazprom’s Headquarters.

The parties discussed the progress in implementing the Cooperation Agreement between Gazprom and St. Petersburg’s Government up to 2008 and the 2004 Cooperation Agreement.

A. Miller and V. Matviyenko addressed the issues of expanding gas deliveries in St. Petersburg’s suburbs and of implementing the Program on gas supplies to St. Petersburg for 2005.

The meeting also raised the issues of upgrading heat and power facilities of the Petrogradsky district and of granting a long-term lease over the municipal heat and power supply facilities subject to upgrading, to the Peterburgteploenergo company.

Reference:

Gazprom and St. Petersburg’s Government signed a 3-year Cooperation Agreement as well as the 2004 Cooperation Agreement on 25 December 2003.

In 2003 Gazprom delivered over 10.8 bcm of gas (101.6% against the target) to St. Petersburg’s consumers. The 2004 Cooperation Agreement envisages for gas deliveries to St. Petersburg to be maintained at last year’s level.

Gazprom channeled RUR 120 million to intensify gas consumption in St. Petersburg’s suburbs in 2003 and RUR 186 million are planned to be allotted for this purpose in 2004. St. Petersburg’s gas supply network is developed at 65% against Russia’s average of 52.7%.

The Peterburgteploenergo company is a 100% subsidiary of the Mezhregionteploenergo company (a 59% stake is controlled through regional gas trading companies by Mezhregiongaz and 41% of shares are owned by Regiongazholding). Peterburgteploenergo was incorporated in 2004 for upgrading St. Petersburg’s heat supply system and managing the municipal heat and power supply facilities.

DIVISION OF RELATIONS WITH MASS MEDIA