The Board of Directors’ meeting has finalized at Gazprom’s Headquarters.

The Board heard a report on the role of independent gas producers in supplies to the Russian market and fulfillment of Gazprom’s export portfolio commitments. The Board considered it expedient to continue using gas resources of independent suppliers.

The Board delayed reviewing the issue of Gazprom’s preliminary performance in 2005 and its 2006 budget, investment program and cost reduction program until a meeting in absentia to be held within the nearest 7 days.

Reference:

Starting 2000 gas production in the Russian Federation has been on a continuous rise, with both Gazprom and independent producers recording steadily growing extraction rates largely driven by soaring natural gas demand on the domestic and foreign markets.

The growing gas demand in the RF is met including by independent suppliers producing over 2004 88.4 bcm of gas, which accounted for 14 per cent of the country’s total. Under the Energy Strategy of Russia up to 2020, independent producers are projected to extract up to 114 bcm and 150 bcm of gas by 2010 and 2020, respectively.

The number of independent suppliers with access to Gazprom’s gas transmission network and the amount of their gas transmitted have grown from six (1998) to 38 (2005) companies and from 25.2 to 65.6 bcm, respectively.

The Gazprom Group’s overall procurement of gas from independent producers in 2004 and 2005 accounted for 2 and 8.1 bcm, respectively, with 12.1 bcm slated for 2006.