Today the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Vladimir Chub, Governor of the Rostov Oblast.

The parties discussed the current status of the Cooperation Agreement between Gazprom and the Rostov Oblast.

In particular, the parties considered matters with regard to regional gas supply and gasification as well as the redemption of consumer debt for previous gas deliveries. It was pointed out that the Rostov Oblast Administration was active in gasifying population centres and clearing existing arrears.

Reference:

The five-year Agreement of Cooperation was entered into by Gazprom and the Rostov Oblast Administration in September 2002 with a Supplement extending its duration signed in October 2007. The Accord on Regional Gasification was inked in July 2007.

In 2007 Gazprom supplied nearly 6.8 bcm of gas to regional consumers. This year projected gas supplies will reach circa 7.2 bcm.

The consumer arrears in the Rostov Oblast declined RUR 72.86 mln down to RUR 285.56 mln as of January 1, 2008. The bulk of the debt is owed by the population and utilities. Regional power plants and industrials pay for the consumed gas in advance.

Natural gas penetration in the Rostov Oblast is estimated at 69.5% including 80.3% in cities and towns and 45.9 % in rural area. The identical rates throughout Russia average 58%, 64% and 40% respectively.

Between 2003 and 2007 Gazprom invested over RUR 1.1 mln to gasify the Rostov Oblast. On its part, the Rostov Oblast Administration is also actively involved in the regional gasification. Over 2003 to 2007 gas distribution networks worth over RUR 2.7 bln were funded by local authorities.

In 2008 with the view of gasifying the Rostov Oblast Gazprom will allocate RUR 530 mln to complete gasification facilities under construction and to initiate the construction of nine inter-settlement pipelines with a total length of 169 km. At the same time, the regional authorities are planning to invest circa RUR 500 mln of budgetary and outsourced funds to construct in-settlement gas networks.