The Headquarters of Gazprom today saw the signing of the Agreement of Cooperation between Alexey Miller, Chairman of the Company’s Management Committee and Vyacheslav Nagovitsyn, President – Chairman of the Government of the Republic of Buryatia.

The Agreement envisages the following joint activities:

implementation of the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries;

• development of programs and execution of projects for gas supply to and gasification of the Republic of Buryatia with compressed and liquefied gas based on relevant investment projects;
• supply of hydrocarbon feedstock to industrial consumers and the population;
• development and introduction of gas and energy saving technologies;
• preparation and approval of regional fuel and energy balances considering efficient utilization of indigenous resources;
• creation of an integrated system of environmental monitoring.

While executing joint projects in Buryatia the Government of the Republic is intent to assist Gazprom in creating a favorable investment and taxation environment needed to ensure the Company’s efficient operation in the region.

Reference:

The Agreement of Cooperation between Gazprom and the Republic of Buryatia was inked for the first time.

The Republic of Buryatia is not supplied with natural gas. The LNG supply level in the Republic makes up 13.3 per cent including 2.6 per cent in cities, towns and urban settlements and 28.5 per cent in the rural area.

The September 3, 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Program). Gazprom was named by the Russian Government as the Eastern Program coordinator.

According to the basic principles of the Program, the priority is, inter alia, given to meeting gas demand of Russian consumers. At the same time gas pricing should adhere to the market principles based on interfuel competition.