The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Oleg Bogomolov, Governor of the Kurgan Oblast.

The parties discussed the progress with the Cooperation Agreement. The discussion centered on the Kurgan Oblast gasification issues, particularly, on potential acquisition by Gazprom of the Shumikha – Mishkino – Yurgamysh – Kurgan gas lateral that had been constructed at the expense of the regional budget, as well as on the gasification prospects.

Background:

The Cooperation Agreement between Gazprom and the Kurgan Oblast Administration was signed in April 2006, the Gasification Accord – in July 2001.

The average level of the Kurgan Oblast gasification is 28.6 per cent including 38.8 per cent in cities and towns and 13.9 per cent in the rural area. Identical figures throughout Russia average 63.2, 67.5 and 45.5 per cent, respectively.

From 2003 to 2008 Gazprom committed RUB 1.29 billion for the Kurgan Oblast gasification. In 2009 the Company additionally allocated RUB 135 million for construction of the Shuchye – Safakulevo gas pipeline and a gas lateral to Kurgan’s CHPP-2. On its part, in 2009 the Kurgan Oblast Administration sponsored construction of an intra-settlement gas pipeline in Safakulevo, eight gas-fired boiler houses and converted 500 households to natural gas.

Gazprom will invest RUB 100 million in gasification of the Kurgan Oblast this year.