The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Vyacheslav Pozgalev, Governor of the Vologda Oblast.

The main focus of the meeting fell on the Vologda Oblast gasification. It was underlined that the joint efforts of Gazprom and the Vologda Oblast Government had increased the regional gasification level by almost 5 per cent since 2005 – up to 54.4 per cent.

This year the Company is allocating RUB 245 million for these purposes, which is RUB 145 million more than was previously planned. These funds are intended for early completion (in 2011 instead of 2012) of the Borisovo – Novoye – Sholokhovo – Novlenskoye inter-settlement gas pipeline construction in the Vologda District and further construction of the Churovskoye – Charomskoye inter-settlement gas pipeline in the Sheksna District. In parallel, the design and estimate documents are being elaborated for another two gas pipelines.

In addition, Gazprom is currently reviewing the investment rationale for a gas lateral to the towns of Kirillov, Belozersk, Lipin Bor and Vytegra.

Background

Gazprom and the Vologda Oblast Government signed the open-ended Cooperation Agreement in June 2003, the 2011–2012 Cooperation Accord – in March 2011.

In the Vologda Oblast Gazprom is engaged in a number of strategic projects, such as construction of the Northern Tyumen Regions (SRTO) – Torzhok, Gryazovets – Vyborg and Pochinki – Gryazovets gas pipelines as well as the Ukhta – Torzhok gas trunkline.

The gasification level in the Vologda Oblast is at 54.4 per cent including 78.7 per cent in cities and towns and 14.5 per cent in the rural area. The identical figures throughout Russia average 63.1, 69.8 and 46.7 per cent respectively.

Between 2005 and 2011 the total amount of Gazprom's investments in the Vologda Oblast gasification exceeded RUB 1.15 billion.