The Gazprom Headquarters hosted today a meeting dedicated to the issues of gas supply to and gasification of the Republic of Buryatia and the Chita Oblast. The meeting was moderated by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee.

Participating in the meeting were Viktor Ilyushin, Member of the Company’s Management Committee, Head of the Department of Relationships with Regional Authorities of the Russian Federation, heads and experts of the Gazprom Administration’s core business units and the Company’s subsidiaries – Promgaz and Mezhregiongaz.

The participants discussed the major issues related to gas supply to the Republic of Buryatia and Chita Oblast within the frame of the Eastern Program implementation. In particular, the most efficient gasification scenarios for Buryatia and Chita Oblast were considered on the basis of technical and economic calculations carried out by Promgaz.

The core business units of Gazprom and Promgaz were tasked with preparing a presentation of various gasification scenarios and delivering it in the regions in the second quarter of 2008.

It was highlighted that Gazprom would develop General Schemes of gas supply to and gasification of the Republic of Buryatia and Chita Oblast during the current year. Cost effectiveness analysis will enable to finally identify gasification sources and methods for the General Schemes, as well as implementation terms and conditions for top-priority activities aimed at the gasification of these regions.

Reference:

The Republic of Buryatia is not supplied with natural gas. LPG penetration in the Republic averages 13.3 per cent including 2.6 per cent in towns and cities and 28.5 per cent in rural areas. Gazprom doesn’t supply LPG to the Republic.

Gazprom and the Chita Oblast made a Cooperation Agreement in July 2006. Gazprom and the Republic of Buryatia entered into Cooperation Agreements this March.

The Chita Oblast is not supplied with natural gas. LPG penetration in the Oblast averages 47.7 per cent including 38 per cent in towns and cities and 65 per cent in rural areas. Gazprom doesn’t supply LPG to the Oblast.

The September 3, 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Program). Gazprom was identified by the Russian Federation Government as the Eastern Program coordinator.

The Program provides for the establishment of four gas production centres: Sakhalin Island, the Republic of Sakha (Yakutia), Krasnoyarsk Krai and Irkutsk Oblast. The Eastern Program implementation will primarily enable to meet current and future demand for gas in Eastern Siberia and the Far East, as well as to launch both pipeline gas and LNG exports to Asia-Pacific countries.