Today, Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Alexey Kuzmitsky, Governor of the Kamchatka Krai singed in Khabarovsk a five-year Gasification Accord.

In accordance with the Accord the parties will jointly participate in the development and implementation of the Kamchatka Krai Gasification Program.

The Accord provides for the development and approval of the following documents fostering the regional gas sector development:

• gasification investment project;
• energy-saving program;
• program for conversion of motor, railroad, water and air transport as well as agricultural equipment to CNG and LNG.

In particular, the Investment Project will include a general gas supply and gasification plan; justification of the effectiveness and priority of gas supply and distribution facilities construction; establishment of an integrated automated system for natural gas flow metering and quality parameters monitoring; a program for introduction of up-to-date gas utilization equipment in order to enhance the effectiveness of gas consumption. The Accord will also include justification of investments; utilization of optional gas supply sources, including CNG and LNG; proposals for the application of state-of-the-art technologies and equipment for the so-called small-scale power generation.

On the basis of the Investment Project the parties will elaborate a stage-by-stage program for the gasification of Kamchatka Krai, define its funding sources and structures.

A provision is made in the Accord for the routing of the natural gas saved as a result of a regional energy-saving program implementation as well as a package of gas-saving measures to Kamchatka Krai new gasification facilities.

A general developer of the gasification investment project, regional energy-saving program and the program for the conversion of motor, railroad, water and air transport as well as agricultural equipment to CNG and LNG will be selected on a competitive basis.

While receiving Gazprom’s gas, the regional Administration will ensure timely and complete payments for deliveries by budget sponsored consumers and assist in facilitating timely and complete payments for gas by commercial consumers.

The Administration will shape a regional fuel balance together with the organizations engaged in fuel supply to the Kamchatka Krai consumers.

In accordance with the Accord, the Administration takes the responsibility for the consumers’ readiness to accept gas, including the construction of local gas pipelines as well as the installation of individual gas flow meters.

Reference:

The Kamchatka Krai includes the Kamchatka Oblast and the Koryak Autonomous Okrug.

Annual gas consumption in the Kamchatka Krai totals 9 mln cu m. There are two municipal and one industrial natural gas consumers, as well as seven boiler houses in the region. Currently, Gazprom doesn’t supply gas to the region.

Pursuant to the instructions of Russian Federation President Vladimir Putin following the results of the meeting dedicated to the socioeconomic development of the Kamchatka Krai as well as the meeting chaired by Viktor Zubkov, Prime Minister of the Russian Federation resulted in Gazprom entering the gas pipeline construction project from the Sobolevsky region to Petropavlovsk-Kamchatsky. The gas pipeline construction is planned to end up in 2010. The gas pipeline commissioning will enable to develop gas supply projects in the Kamchatka Krai.