Alexander Ananenkov, Acting Chairman of the Gazprom Management Committee has conducted today in the Company’s Central Office a Meeting of the Coordinating Committee for the Altai Project, focusing on gas supply and gasification related issues for the Altai Krai and Republic of Altai.

Present at the Meeting were members of the Committee, specialists from the Company’s core business units, Tomsktransgaz and Promgaz.

The Meeting addressed the progress with the development of the General Scheme of gas supply to the Republic of Altai, which is expected to be completed this year. Additionally, the participants discussed the issue of adjusting the General Scheme of gas supply to the Altai Krai, taking account of the gasification prospects for western and southwestern areas of the region.

Furthermore, attention was paid to Gazprom’s participation in designing and building distribution networks, reconstructing large boilers in the town of Gorno-Altaisk and settlement of Maima with a view to ensuring synchronization of consumer readiness to receive gas with construction timing for the Barnaul – Biysk – Gorno-Altaisk gas pipeline with a lateral toward Belokurikha.

At the end of the Meeting the Company’s core business units and subsidiaries were tasked accordingly.

Reference:

The Coordinating Committee for the Altai Project was established on July 7, 2006.

The Altai Project contemplates supplying Russian natural gas to the People’s Republic of China. The Project implementation will enable to provide gas to Russia’s population areas adjoining the pipeline route, create new jobs and considerably replenish the regional and local budgets through relevant tax revenues.

In 2004 Gazprom and the Administration of the Altai Krai entered into a five-year Agreement of Cooperation and Accord on Gasification. In April 2006 the parties signed a synchronized construction schedule for gasification facilities in the Altai Krai.

In 2000 construction was launched on the Barnaul – Biysk – Gorno-Altaisk gas trunkline with a branch toward Belokurikha. November 2006 saw the commissioning of the Barnaul – Biysk section totaling around 150 km.

In all, 13 branch pipelines are planned to be built along the route of the Barnaul – Biysk – Gorno-Altaisk gas trunkline with a branch toward Belokurikha. This will make it possible to gasify 117 thousand apartments in 297 population centres in 14 areas of the region.

Natural gas penetration in the residential sector of the Altai Krai accounts for 4.1 per cent, including 5.9 per cent in cities and towns, and 1.2 per cent in rural area. The same figures throughout Russia average 53, 60 and 34 per cent, respectively.

Gazprom and the Republic of Altai entered into an Agreement of Cooperation in September 2006. The Agreement envisages amongst other things Gazprom’s participation in effective gas supply projects for residential and industrial consumers on the territory of the Republic of Altai.

In 2007, as part of the implementation of the Regional Gasification Program for the Russian Federation, Gazprom provided the Republic of Altai with RUR 100 mln. In May 2007 the decision was taken to allot extra funds for gasification of the Republic of Altai in the amount needed for devising the General Scheme of gas supply to the region and construction of local gas distribution pipelines in Gorno-Altaisk and Maima.

A topical issue is timely preparation of Altai’s consumers to receive natural gas.