Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Mikhail Men, Governor of the Ivanovo Region have signed a synchronized construction schedule for regional gasification facilities.

In accordance with the schedule, the Ivanovo Region will see a complex of works aimed at preparing consumers for gas supply by projected Gazprom pipelines currently under sweeping construction as stipulated by the gasification program for RF regions over 2005 to 2007.

“Gazprom has set the forward-looking goal of constructing ten gas pipelines between settlements in the Ivanovo Region. Therefore, the Regional authorities must strictly follow the gasification schedule. Preparation of consumers for gas deliveries, namely construction of in-settlement and street gas grids, should be completed in line with Gazprom’s construction schedules”, said Alexey Miller.

“During 2005-2007 the Region’s leadership plans to commit some RUR 580 mln to construct more than 237 km of local gas grids, convert 105 heating plants to natural gas and gasify 12,751 households”, specified Mikhail Men.

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The network schedule of gasification identifies an activity list and implementation dates for gas infrastructure between 2006 and 2007, and is aimed at providing gas connections to consumers immediately upon pipeline completion. To connect consumers, regional authorities are to construct local and household networks, build new or convert to gas existing heating plants, install household gas appliances, etc.

Network schedules are signed to implement Gazprom’s gasification program for RF regions over 2005 to 2007, which is funded with RUR 35 bln. Of this amount, RUR 5.2 bln was already committed in 2005 and not less than RUR 17.6 bln and RUR 12.2 bln is slated for 2006 and 2007, respectively. Extra RUR 1.1 bln will be allocated for the reconstruction and modernization of existing gas distribution pipelines.

At present the Russia-averaged level of gasification makes up 53 per cent including 60 per cent in cities & towns and 34 per cent in rural area.

Implementing the gasification program over 2005 to 2007 will already help boost gas supply to Russian regions to 60 per cent average by 2008 including 66 per cent in cities & towns and 42 per cent in rural area.

To achieve said targets, Gazprom will provide gas to 3,851 thousand apartments & households including 2,673 thousand in cities & towns and 1,178 thousand in rural area.

The Program will enable Gazprom to convert to natural gas about 20 thousand new residential facilities (hospitals, kindergartens, schools, etc.), over 5 thousand heating plants in villages & settlements and more than 500 agricultural companies, more than 12 thousand km of pipelines to be laid and some 11 mln citizens of 53 Russian regions to be serviced.

Gazprom’s investment priorities for regional gasification are based on the following criteria: full payments for gas deliveries; repayment of gas debts; economic viability of projected gas infrastructure; customers’ readiness to receive gas; actual loading of gas laterals and distribution stations; assistance of RF regional authorities in promoting the use of compressed and liquefied natural gas as motor fuel.

The Ivanovo Region is currently gasified by 65 per cent (78 per cent in cities & towns and 17 per cent in rural area).

Under its 2006 gasification program for RF regions, Gazprom plans to construct in the Ivanovo Region 10 gas pipelines between settlements.

In 2005 Gazprom provided the Region with more than 1.8 bcm.