Led by Valery Golubev, Deputy Chairman of the Company’s Management Committee, a Gazprom delegation started a business trip to the Altai Krai and Altai Republic. The delegation is comprised of: Viktor Ilyushin, Member of the Management Committee – Head of the Department for the Relationships with Russian Regions, heads and specialists from Mezhregiongaz.

Today the delegation arrived in Barnaul where Valery Golubev had a working meeting with Alexander Karlin, Head of the Altai Krai Administration.

The parties discussed the state of implementation of the Cooperation Agreement between Gazprom and the Altai Krai Administration. A focus was put on issues related to gasification of the region including its southern and southwestern areas.

Special attention was paid to the need for the regional Administration to execute the synchronized construction schedule for gasification facilities in the Altai Krai.

Background:

Gazprom and the Altai Krai Administration signed a five-year Cooperation Agreement and a Gasification Accord in 2004.

Natural gas penetration in the residential sector of the Altai Krai makes up 6 per cent including 8.7 per cent in cities & towns and 2 per cent in rural areas. The same figures throughout Russia average 62, 67 and 44 per cent respectively.

In 2007 Gazprom supplied regional consumers with nearly 650 mcm of gas. This year deliveries are planned at nearly 730 mcm.

The Altai Krai consumers have no debt to Gazprom for the delivered gas. As of August 1, 2008, advance payments amounted to RUR 27 mln.

In October 2007 Gazprom put into operation a branch pipeline to the town of Belokurikha, which is an integral part of the Barnaul – Biysk – Gorno-Altaisk gas main with the lateral to Belokurikha. The branch pipeline construction enables to gasify a further six settlements in addition to Belokurikha. In all, the route of the Barnaul – Biysk – Gorno-Altaisk gas main with the branch pipeline to Belokurikha is planned to see the construction of 13 branch pipelines, which will enable to gasify 117 thousand apartments in 297 settlements of Altai’s 14 areas.