Victor Kress, Governor of the Tomsk Region and Alexey Miller, Gazprom’s Management Committee Chairman

Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Victor Kress, Governor of the Tomsk Region have entered into a 5-year Cooperation Agreement.

The Agreement stipulates cooperation deepening between Gazprom and the Tomsk Region in the following key directions:

- geological survey for hydrocarbons, exploration and development of oil and gas fields in the Region;

- ensuring uninterrupted operation of the United Gas Transmission System;

- meeting the top priority challenge of providing Regional consumers with gas to be extracted from local gas fields;

- constructing power generation facilities;

- expanding capacities for compressed and liquefied natural gas use as motor fuel;

- developing and introducing gas conservation technologies;

- ensuring environmental safety and rational nature management;

- developing a comprehensive automated gas consumption and quality measurement system on the platform of gas measurement units operated by gas transmission, distribution, industrial and utility companies.

In accordance with the Agreement, the Tomsk Region’s authorities are committed to channeling timely and full payments for gas to be delivered to Regional budget-financed companies as well as to offsetting Gazprom’s losses to be incurred when supplying gas to privileged consumers. In building the budget, the Regional Government will earmark funds intended to pay off gas deliveries to budget-financed bodies.

At the same time, the authorities will assist Regional consumers in their entering into direct agreements with a Gazprom-authorized gas supplier and will ensure timely decision-making on the amount of special gas transmission tariff additions meant to finance gas supply expansion programs.

Gazprom will also receive assistance in registering social and residential facilities to be transferred under the municipal ownership.

Gazprom, on its part, takes the commitment to provide secure gas deliveries to the Tomsk Region’s consumers given the United Gas Transmission System (UGTS) capacities and solvent gas customers’ demand and timely payments.

In addition, the Agreement specifies a range of measures to be stepped up for the purpose of providing additional safety of UGTS, accident prevention and third-party access detection inclusive.

Reference:

Gazprom and the Tomsk Region’s authorities first entered into a Cooperation Agreement in July 1998.

The gas supply infrastructure of the Tomsk Region is developed by 5.4% of maximum demand, including by 6.3%, in cities, towns and urban settlements and 3.8%, in rural area, which is substantially below the identical Russian Federation-averaged parameter of 52.7%.

Promgaz, a Gazprom subsidiary, has so far developed an investment project of expanded gas deliveries to the Tomsk Region, taking into account consistent exploitation of local gas, condensate and oil resources. Said project implementation is expected to result in 1.6fold gas consumption growth in the Region.

DIVISION OF RELATIONS WITH MASS MEDIA