The Gazprom Regional Policy Commission has convened on a session chaired by Valery Golubev, Head of the Commission, Deputy Chairman of the Gazprom Management Committee.

The Commission examined the issues relevant to successful implementation of the Gasification Program for RF Regions in 2007.

The Commission recommended that the core business units progress with general schemes for regional gas supply and gasification as well as agree with gas transmission transporters on technical terms with regard to connecting gas distribution facilities to the transmission network when devising general schemes for regional gasification and gas supply.

The Commission also advised that a draft Gasification Program for RF Regions over 2008 to 2010 be devised with the account of the operating results in 2005 and 2006, and the recommendations voiced by the Commission.

Reference:

The Gasification Program for RF Regions over 2005 to 2007 earmarks RUR 43 bln of Gazprom’s investments (including RUR 5.2 in 2005, RUR 17.6 bln in 2006 and RUR 20.2 bln in 2007) with 58 Russian regions covered. Furthermore, in 2006 alone Gazprom committed RUR 1.1 bln to upgrade existing low pressure networks.

The 2005-2007 Program is aimed at increasing the Russia-averaged gasification (pipeline gas supply) rate to 62 per cent including 67 per cent in cities, towns & urban settlements and 44 per cent in rural area (at present these rates are at 54, 61 and 36 per cent, respectively). A further 13 mln Russian citizens will be serviced under the Program.

In 2006 Gazprom constructed 122 local pipelines with a total length of 1,313 km, gasified 147 settlements, 410 thousand apartments and households (of which 180 thousand are in cities & towns and 227 thousand in rural area) and converted to natural gas nearly 2 thousand residential facilities (hospitals, schools, kindergartens and etc.), 576 rural boilers and more than 50 agricultural enterprises.

In 2007 Gazprom plans to gasify 249 settlements, 696 thousand apartments and households, (of which 311 thousand are in cities & towns and 385 thousand in rural area), and converted to natural gas nearly 3.6 thousand residential facilities, 980 rural boilers and over 90 agricultural enterprises.