Today, as a part of Gazprom’s delegation business trip to Salekhard, Alexey Miller, Chairman of the Company’s Management Committee and Yury Neyolov, Governor of the Yamal-Nenets Autonomous Okrug (YaNAO) signed an Agreement of Cooperation for 2009.

The Agreement contemplates cooperation between the parties in a wide range of issues including the top priorities as follows: 

·   gasification of the region;

·   utilization of modern renewable electricity sources;

·   introduction of distributed energy sources and environmentally friendly technologies for gas supply facilities;

·   wider use of natural gas as a vehicle fuel;

·   conversion of gas fired boiler houses to the cogeneration regime;

·   utilization of low pressure and associated petroleum gas as a fuel during the construction of new power plants.

In 2009 Gazprom will keep constructing facilities as part of the Gas Pipeline Branch to Salekhard, Labytnangi and Kharp investment project as well as will start executing the Gas Pipeline to Urengoy project.

The parties will continue the work aimed at stimulating their investment, R&D and innovation activities and implementing highly effective joint projects in YaNAO. The interaction will continue within the Comprehensive Development Program for Yamal Peninsula Onshore and Offshore Fields.

The YaNAO authorities will assist Gazprom’s subsidiaries operating on the territory of the region in solving right-of-way related issues, agreeing on design and estimate documentation, performing design & survey and construction work.

The Agreement is also targeted at promoting cooperation in the energy saving, capital construction, transportation areas, tax and social policy.

In 2009 the parties will continue transferring the ownership of household and welfare facilities owned by Gazprom’s subsidiaries to regional municipalities. When operating its facilities on the YaNAO territory, Gazprom will prioritize recruiting local qualified labor force including representatives of the indigenous minorities.

Background:

The Yamal-Nenets Autonomous Okrug (YaNAO) is the major gas production province of Gazprom, with over 90 per cent of gas (about 83 per cent of the Russian total) extracted here by the Company.

The primary document regulating the cooperation between Gazprom and YaNAO is the General Agreement. Within the scope of this Agreement the parties have signed additional agreements and accords including the Gasification Accord, the Memorandum of Cooperation as well as agreements of cooperation entered into on an annual basis.

In 2007 Gazprom supplied YaNAO with some 1.5 bcm of natural gas. This year’s deliveries are planned at over 1.7 bcm.

The regional consumers have no debt for natural gas deliveries.

In 2007 the Company supplied YaNAO with 40.6 thousand t of diesel fuel, motor gasoline and liquefied gas. This year Gazprom plans to supply YaNAO with 60thousand t of liquid hydrocarbons.

The average gasification level of the region is 51.8 per cent (Russia – 62 per cent). In 2007 Gazprom spent RUB 100 mln to gasify YaNAO. The funds were used for designing and launching the construction of three gas laterals with a total length of 43 km. In 2008 Gazprom will invest RUB 140 mln for the same purposes so as to continue the construction of the said gas laterals.