Today at the Gazprom Headquarters Alexey Miller, Chairman of the Company’s Management Committee and Valentina Matvienko, Governor of Saint Petersburg signed an Agreement of Cooperation for 2010.

According to the Agreement, the parties will cooperate in the following fields: comprehensive development of the Saint Petersburg gas distribution system, construction and reconstruction of heat supply systems in the Kurortny, Petrodvortsovy and Petrogradsky districts of the city, as well as execution of the Gas Supply Program for Saint Petersburg over 2007 to 2015 with a potential extension till 2025.

Gazprom and Saint Petersburg will participate in defining and implementing the activities aimed at performing the General Scheme for gas supply to Saint Petersburg, as well as in elaborating and introducing gas-saving activities.

Pursuant to the document, Gazprom in 2010 will allocate funds to prepare and examine design documentation for the following facilities:

- the Shosseinaya-2, Vostochnaya-2 and Lagolovo gas distribution stations (GDS);

- the girths between the Belousovo – Leningrad and Kohtla – Yarve – Leningrad gas trunklines;

- the gas lateral to Kolpino including the Kolpino-2 GDS with the gas distribution network;

- reconstruction of the Osinovaya Roscha GDS.

Gazprom will provide reliable gas supply to Saint Petersburg consumers.

Background:

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

Saint Petersburg consumers do not have indebtedness for delivered gas. As of December 1, 2009 the advance payments accounted for RUB 858.6 million.

In 2008 Gazprom invested RUB 1.3 billion in the gasification of Saint Petersburg. These funds were used to construct 96.6 kilometers of gas pipelines.

This year Gazprom allocated RUB 1.3 billion for the city gasification, namely, to construct 105.8 kilometers of distribution and street gas pipelines. The Saint Petersburg Government, on its part, secured conversion of ten boiler houses and 1,954 households to natural gas.

Between 2004 and 2008 Gazprom committed RUB 10.7 billion for reconstruction of heat supply facilities in the Petrogradsky, Kurortny and Petrodvortsovy districts of Saint Petersburg. These funds were used to construct and reconstruct 169 boiler houses, build 642.1 kilometers of heat pipelines, as well as to supply heat to 247 thousand citizens. 390 schools, kindergartens, health care facilities and over 1,000 of administrative facilities were connected to new heat supply sources.

In 2009 Gazprom allotted some RUB 3.2 billion to reconstruct the Kurortny and Petrodvortsovy districts of Saint Petersburg. 23 gas-fired boiler houses, 11 central heat supply stations were constructed, one boiler house was reconstructed and 145 kilometers of heat pipelines were laid in the Kurortny district. Five gas-fired boiler houses and 18.8 kilometers of heat pipelines were put onstream in the Petrodvortsovy district.

In 2009 Gazprom fully met its obligations relevant to gasification facilities construction and heat supply facilities reconstruction in Saint Petersburg.