Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Oleg Korolyov, Governor of the Lipetsk Region have signed a synchronized construction schedule for Regional gasification facilities.

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

“We are in the final stage of the gasification process in the Lipetsk Region and I’m positive that within the nearest two or three years the Region will be successfully gasified”, said Alexey Miller.

On his part, Oleg Korolyov noted: “We are grateful to Gazprom for its contribution in the gasification of the Region and implementation of socially significant projects.

Between 2005 and 2007 the Lipetsk Region’s authorities are resolute to convert to natural gas 4 boiler plants and gasify 306 households”.

Reference:

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 after pipeline construction. To connect consumers, regional authorities are to construct local and household networks, build new or convert to gas existing boiler plants, install household gas appliances, etc.

Network schedules are part of 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 gasification rate 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 help boost gas supply to Russian regions to a 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 boiler plants in villages & settlements and more than 500 agricultural companies, with 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 Lipetsk Region is currently gasified by 79 per cent (about 90 per cent in cities & towns and some 64 per cent in rural area).

In 2006 Gazprom plans to construct 5 gas pipelines in the Lipetsk Region.

Over 2005 Gazprom has provided the Region with roughly 4.6 bcm of gas.