An Agreement of Cooperation for 2011 was signed today at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Valentina Matvienko, Governor of Saint Petersburg.

Pursuant to the document Gazprom and Saint Petersburg will continue joint efforts on comprehensive development of the gas distribution system in the city and its suburbs, construction and reconstruction of heat supply systems in a number of districts, construction of power facilities as well as execution of the Program for Gas Supply to Saint Petersburg over 2007 to 2015 with its potential extension until 2025. The parties will elaborate and implement the activities aimed at gas saving and wider use of gas as a motor fuel.

Gazprom will allocate funds for construction of the Lagolovo gas distribution station (GDS), interconnectors between the Belousovo – Leningrad and Kohtla – Yarve – Leningrad gas trunklines as well as a gas lateral to the town of Kolpino.

The Company will arrange construction of the pipelines to supply gas to the Yuzhnaya, Pervomaiskaya and Pravoberezhnaya combined heat and power plants (CHPP) as well as the gas pipelines linking Shosseinaya-2 GDS with Yuzhnaya CHPP GDS and the 2nd Vostochnaya gas main with the Shushary industrial area.

The activities will be carried on to construct and reconstruct heat supply facilities in the Petrodvortsovy, Central and Admiralteisky districts of Saint Petersburg. To that end, Gazprom will allocate RUB 3.1 billion in the current year.

On its part, the Saint Petersburg Government will coordinate consumers preparation for gas supply and render assistance in providing them with metering devices.

Saint Petersburg Governor Valentina Matvienko stressed that, “It is particularly important that the Agreement places special emphasis on joint social projects which, among other things, include further construction of sports and health centers as part of the Gazprom to Children program.”

Background:

Gazprom and the Saint Petersburg Government signed the Agreement of Cooperation in December 2008 with no time limit.

Like in the previous years, in 2010 Gazprom fully met its obligations on the gasification facilities construction in Saint Petersburg and reconstruction of heat and power supply facilities in the city.

Last year Gazprom invested RUB 1.3 billion in the gasification of Saint Petersburg with the same amount slated for 2011.

In 2010 the funds were allocated to finish construction of 11 gas pipelines, initiate construction of seven gas pipelines as well as to develop front-end engineering design for six gas pipelines. On its part, the Saint Petersburg Government invested RUB 726 million in gas distribution pipelines and flowlines construction.

In 2010 Gazprom spent RUB 3.1 billion on heat and power supply facilities construction and reconstruction in Saint Petersburg to lay 74.2 kilometers of heat supply networks, construct and reconstruct 5 boiler houses. 392 buildings, including 253 residential houses, 9 child welfare and 12 healthcare institutions, have been connected to these boiler houses since the beginning of the heating season.