Gazprom’s Headquarters today hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Ilya Mikhalchuk, Administration Head of the Arkhangelsk Oblast.

The parties addressed the implementation of the Agreement of Cooperation between Gazprom and the Arkhangelsk Oblast placing a focus on the construction of a gas pipeline branch to Arkhangelsk and Severodvinsk as well as issues concerning regional gasification.

Reference:

The Agreement of Cooperation between Gazprom and the Arkhangelsk Oblast Administration was signed in October 2004, the Accord on Gasification – in May 2006.

In 2006 Gazprom supplied the regional consumers with over 1 bcm of gas. Roughly the same volumes are slated for the current year.

The gas lateral from the Ukhta – Torzhok (Nyuksenitsa compressor station) gas trunkline system to Arkhangelsk and Severodvinsk has been constructed since 1988. The length of the lateral will account for 647.2 km, projected throughput capacity by 2010 – over 2.5 bcm. Full capacity – 3.3 bcm/yr. Until now construction has been completed on 400 km of the pipeline.

The gas lateral construction has been financed by Gazprom, Arkhangelsk authorities and Severgaz.

Natural gas penetration in the Arkhangelsk Oblast averages 9.8 per cent including 13 per cent in cities, towns and settlements, and 2 per cent in the rural area. The identical figures throughout Russia average 62, 67 and 44 per cent respectively.

Between 2006 and 2007 Gazprom committed RUR 1.054 bln to gasify the Arkhangelsk Oblast.

This year the Company plans to invest a further RUR 504 mln for the same purposes. The funds will be used for engineering and constructing eight gasification facilities.