The city of Kaluga today has hosted a meeting dedicated to gasification of the Central Federal District. Moderating the meeting were Georgy Poltavchenko, Plenipotentiary Envoy of the RF President to the Central Federal District and Alexander Ryazanov, Deputy Chairman of the Gazprom Management Committee.

Present at the meeting were Viktor Ilyushin, Member of the Gazprom Management Committee and Head of the Gazprom Department for the Relationships with the Russian Federation Regions, top managers and specialists from Mezhregiongaz, Mostransgaz, Promgaz and regional gas distribution companies.

Also taking part in the meeting were regional heads of CFD’s executive and legislative branches.

The parties pondered on potential development of gasification throughout CFD as well as paramount measures to be taken for constructing gasification facilities and preparing consumers for gas supply.

The meeting specifically underlined that the final aim of the Gasification Program was bringing natural gas straight to the consumer. To this end, special significance is attached to interaction between Gazprom and public authorities. This is imperative so as to finalize local gas pipeline laying and consumer preparation for gas supply, which is funded from regional budgets, not later than the completion of gas pipelines built by Gazprom.

At the end of the meeting CFD’s executive branch was entrusted with:

• devising general schemes of gas supply & gasification and projected regional energy balances, taking into account possible natural gas supply alternatives (by road and rail in the liquefied and pressurized form)
• financing local and household network construction along with gas equipment mounting under schedules agreed upon with Gazprom
• consolidating all gas distribution networks of each region within an integrated gas distribution company
• providing household consumers with technical gas metering devices
• bringing natural gas consumption standards in the household sector in line with actual consumption rates

“Implementing the Gasification Program for Russia will create new conditions for social and industrial development of the Central Federal District. Not only Gazprom but also regional authorities and the population are interested in the Program’s success.

The major challenges of comprehensive gasification of CFD are substantially boosting the rate of rural gasification as well as increasing the loading of gas branch pipelines, which is currently lower in the region, as compared to Russia-averaged parameters,” said Alexander Ryazanov.

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Under its Gasification Program for RF Regions between 2005 and 2007, Gazprom will spend RUR 35 bln to gasify 53 constituents of the Russian Federation. Implementing the Program will help boost Russia-averaged gasification rates from 53 to 60 per cent.

The Gasification Program for RF Regions between 2005 and 2007 contemplates gasifying 3,851 thousand apartments & households including 2,673 thousand in cities & towns and 1,178 thousand in rural area, with some 11 mln people to be serviced.

The Central Federal District comprises the 18 constituents of the Russian Federation: Belgorod, Kursk, Lipetsk, Moscow, Oryol, Ryazan, Smolensk, Tambov, Tver, Tula and Yaroslavl regions, and the city of Moscow.

Gazprom has entered into agreements on cooperation with all of the CFD constituents, with accords on gasification inked with the governments of 12 constituents.

Gas penetration in CFD averages 82.3 per cent. Between 2003 and 2005 Gazprom has invested more than RUR 5.5 bln to gasify CFD, with over RUR 6.3 bln projected to be committed for these purposes over 2006.

Gazprom annually supplies CFD with some 100 bcm of gas, which is mainly consumed by the power generation and household sectors.