The Gazprom delegation led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee continues its business trip throughout Eastern Siberia and the Far East.

Today, in the city of Yuzhno-Sakhalinsk, Alexander Ananenkov and Ivan Malakhov, Governor of the Sakhalin Oblast have signed an Accord on gasification of the region.

The Accord was signed for promoting the Agreement of cooperation between the Sakhalin Oblast Administration and Gazprom, and contemplates developing and approving the following documents that foster further development of Sakhalin gasification systems:

- an Investment Project of Gasification;

- a Regional Energy Saving Program;

- a Program for the conversion of motor transport and agricultural equipment to CNG & LNG.

The general developer of the documents will be identified on a contest basis.

The General Scheme of gas supply to and gasification of the Sakhalin Oblast will be an integral part of the General Scheme of the Far Eastern Federal District gasification, which is currently under development by Promgaz specialists.

“In accordance with a major principle set forth in the East Program, the Sakhalin gas extraction province development is a top priority target. Prioritizing natural gas deliveries to the Far East, Sakhalin inclusive, is the main objective,” said Alexander Ananenkov.

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The Sakhalin Oblast is a strategically important partner of Gazprom. On September 14, 2006 Gazprom and the Sakhalin Oblast Administration inked the Agreement of cooperation identifying gasification of the region as a crucial joint business. At present, natural gas penetration in the household sector of the Sakhalin Oblast makes up 9 per cent.

The Sakhalin Oblast is a promising gas extraction province due to the availability of considerable proven oil and gas reserves as well as the advantageous geographical location, namely proximity to potential customers in Asia Pacific and the USA.

Currently, Gazprom doesn’t supply gas to the Sakhalin Oblast. The Company intends to prepare its resource base in the region, shape and develop a Sakhalin – Khabarovsk – Vladivostok gas transmission system and provide a reliable gas supply system for the Far East constituents.