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GAZPROM

June 5, 2008

On working meeting concerning gasification of and gas supply to Kamchatka Krai

Headed by Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee the Company’s delegation continues its business trip across the Far East and the Transbaikal region.

Today in Petropavlovsk-Kamchatsky Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee and Alexey Kuzmitsky, Governor of the Kamchatka Krai convened a working meeting on the topical issues surrounding the gas supply project implementation in the Kamchatka Krai.

Present at the meeting were heads and specialists of Gazprom’s core business units, Gazprom invest Vostok, Gazprom transgaz Tomsk, Promgaz, VNIIGAZ, Gazflot, Mezhregiongaz, representatives of the Kamchatka Krai Administration, Kamchatgazprom and Kamchatskenergo.

Addressing the meeting with a speech of welcome was Oleg Safonov, Plenipotentiary Envoy of the Russian Federation President to the Far Eastern Federal District. He pointed out the Gas Supply to the Kamchatka Oblast, Phase 1 – gas supply to Petropavlovsk-Kamchatsky project execution deadline set by the country’s leadership was the year 2010. Oleg Safonov ordered to organize the work in such a way so that the said deadline was met strictly on schedule. A focus was placed on the need of promptly finalizing the procedures associated with Gazprom’s acquisition of shares in Kamchatgazprom from the Federal Agency for Federal Property Management.

The attendees addressed the progress with the project implementation pointing out in particular that the general designer Promgaz had already scrutinized and updated the endorsed design documents on the development of the Kshukskoye and Nizhne-Kvakchikskoye fields, the Sobolevo – Petropavlovsk-Kamchatsky gas main and paramount gasification facilities. In addition, Gazprom invest Vostok had been named as the project implementation customer, with drilling and construction contractors, currently in the process of relocation to the said sites, selected.

Special attention was paid to the need of synchronizing the startup of gas production & transmission capacities and facilities consuming gas. This requires developing pertinent synchronous capacity startup schedules. The said target will be met with the use of the General Gas Supply and Gasification Scheme for the Kamchatka Krai, to be completed in 2008 in accordance with the Accord on Gasification between Gazprom and the Kamchatka Krai Administration.

The attendees also noted that the General Scheme completion would enable to start developing the Energy Strategy for the Kamchatka Krai. This Strategy will determine an optimal structure of the regional energy balance and will contain a comprehensive approach to identifying possible development directions for the regional fuel & energy sector with the use of all available energy sources.

The meeting resulted in the assignment of tasks targeted at timely execution of the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project in 2010.

Reference:

The Kamchatka Krai was formed on July 1, 2007. It consists of the Kamchatka Oblast and the Koryak Autonomous Okrug.

Gasification of the region accounts for 0.1 per cent. Annual gas consumption –9 mcm. Natural gas is consumed by one industrial and two household utilities as well as seven boiler houses. At present Gazprom does not supply gas to the Kamchatka Krai.

In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to get involved in the Gas Supply to the Kamchatka Oblast, Phase 1 –Gas Supply to Petropavlovsk-Kamchatsky project and set the tasks on the topical issues of the project. The pipeline construction must be completed in 2010.

The project stipulates developing a number of small gas condensate fields on the western coast of the Kamchatka Peninsula (where Kamhatkagazprom holds the licenses) and constructing the Sobolevo –Petropavlovsk-Kamchatsky gas main as well as distribution networks in Petropavlovsk-Kamchatsky.

The total length of the Sobolevo –Petropavlovsk-Kamchatsky pipeline is to amount to 398 km, of which only 96.6 km are built. The project customer is Kamchatgazprom.

The Russian Federation Government tasked Gazprom with acquiring shares in Kamchatgazprom.

Gazprom invest Vostok (a 100 per cent subsidiary of Gazprom) is the customer of the Gas Supply to the Kamchatka Oblast, Phase 1 –gas supply to Petropavlovsk-Kamchatsky project.

In December 2007 Gazprom and the Kamchatka Krai Administration inked the Accord on Gasification. Promgaz’s specialists are currently engaged in developing the General Gas Supply and Gasification Scheme for the Kamchatka Krai.

 

 

 

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