Today, at the Gazprom Headquarters, Alexey Miller, Chairman of the Gazprom Management Committee and Vladimir Torlopov, Governor of the Republic of Komi have signed an Accord on gasification.

The Agreement stipulates developing and approving documents to further develop regional gas facilities, in particular:

- an Investment Project of Gasification;

- a Regional Energy Saving Program;

- a Program for the conversion of light duty vehicles and agricultural equipment to CNG & LNG.

A general developer of said documents will be chosen on a competitive basis with the participation of Promgaz.

In accordance with the Accord, the Investment Project will include a General Scheme of gas supply to and gasification of the Republic, a viability and priority report for the construction of gasification facilities, proposals on gas saving measures, a reconstruction program for gas distribution facilities, proposals on the development of a comprehensive automated system of natural gas consumption and quality measurement.

The Agreement envisages joint participation of Gazprom and the Republic of Komi in the regional gasification. To this end, the regional authorities are committed to constructing in-settlement networks linked with Gazprom gasification facilities at the expense of the Republican and local budgets, and other financing sources.

In order to provide reliable and economically efficient gas deliveries, the Republican government undertakes in accordance with the Accord to:

- Improve gas consumption discipline;

- Set gas consumption standards in the residential sector based on actual consumption volumes;

- Develop and implement a program to provide the population with gas metering devices.

On its part, Gazprom will provide gas deliveries to the regional population, social sector and budget sponsored consumers in the agreed amount, taking into account the gas supply system capacity and gas balance for Russia. Gas will be supplied provided current and previous deliveries are paid up in full.

Part of natural gas saved by means of the Regional Energy Saving Program and a string of gas saving measures will be supplied in the agreed amount for the gasification of new facilities in the region.

Reference:

The Republic of Komi is an important strategic partner for Gazprom. Severgazprom is one of Gazprom’s biggest subsidiaries operating in the Republic. At present, the Republic sees the construction of the Northern Tyumen Region - Torzhok gas main having a total length of 321.4 km.

The five-year Agreement on cooperation between the Government of the Republic of Komi and Gazprom was signed on May 12, 2005. Within the Agreement scope the parties entered into the Accord on cooperation between the Republican Government and Gazprom for 2005 to 2007.

In 2005 Gazprom supplied the Republic with 3 bcm of gas.

Natural gas penetration in the regional residential sector is at 41.4 per cent, including 54.2 per cent in cities and towns, and 5.5 per cent in rural area. The identical Russia-averaged parameters make up 53, 60 and 34.7 per cent, respectively.