Gazprom’s Headquarters today hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Dmitry Zelenin, Governor of the Tver Oblast.

The parties discussed the status of implementation of the Agreement of Cooperation between Gazprom and the Tver Oblast Government, and considered amongst other things issues surrounding gasification of the region.

In that regard, emphasis was put on the need for the Tver Oblast Government to fulfill the gasification plan/schedule and to strengthen the payment discipline of consumers.

Background:

The Agreement of Cooperation between Gazprom and the Tver Oblast Government was signed in January 2002 on the terms of unlimited duration, the Gasification Accord – in December 2004.

In 2007 Gazprom supplied over 4.3 bcm of gas to the Tver Oblast consumers. Supplies for the current year are projected in the amount exceeding 4 bcm.

As of July 1, 2008, the gas arrears in the household sector of the Tver Oblast reached RUB 114.4 mln. Industrial consumers pay for gas in advance.

Gas penetration in the Tver Oblast averages 53 per cent including 70.7 per cent in towns & cities and 18.4 per cent in the rural area (throughout Russia – 62, 67 and 44 per cent respectively).

Between 2003 and 2006 Gazprom invested over RUB 1.1 bln to gasify the Tver Oblast.

In 2007 Gazprom allocated additional RUB 800 mln for the same purposes and met its obligation related to the construction of inter-settlement gas pipelines. At the same time, the regional authorities failed to completely meet their commitments in conformity with the plan/schedule of gasification: 250.8 km of gas distribution pipelines were constructed (90.4 per cent versus the schedule), 907 apartments and households were prepared (16.5 per cent) for gas deliveries and no boiler houses were converted to gas.

In that connection, in 2008 Gazprom didn’t allocate funds for the construction of new gasification facilities in the Tver Oblast. However, RUB 400 mln was allocated to continue the construction of three regional gas pipelines initiated in 2007.