Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Vasily Bochkarev, Governor of the Penza Oblast signed a five-year Accord on Gasification.

The Accord provides for elaborating and implementing the following documents concerning the development of the Penza Oblast gas sector:

• a gasification investment project;
• a regional program for energy conservation;
• a program for conversion of motor vehicles and agricultural machinery to gas.

The investment project will include, inter alia, a General Gas Supply and Gasification Scheme for the Penza Oblast, proposals concerning the execution of a set of gas conservation activities, a reconstruction program for gas distribution systems, proposals on establishing a comprehensive automated gas consumption and quality measurement system, proposals on alternative gas supply sources utilization for gasification of the population centers distant from gas mains, an investment rationale and project documentation.

Background

The Agreement of Cooperation was signed between Gazprom and the Penza Oblast Government in May 2005. The regional General Gas Supply and Gasification Scheme was worked out in 2007.

Last year Gazprom allocated RUB 100 mln for the Penza Oblast gasification. These funds were used to construct three inter-settlement gas pipelines (including completion of the pipeline initiated in 2006). In addition, Gazprom started constructing another gas pipeline.

At the same time, the Penza Oblast Government ensured the readiness of 432 households to receive gas.

In 2008 Gazprom will invest RUB 100 mln in the Penza Oblast gasification.

Natural gas penetration in the Penza Oblast averages 81.8 per cent (including 91.1 per cent in cities and towns and 65.1 per cent in the rural area). The same figures throughout Russia average 62, 67 and 44 per cent respectively.