Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Vyacheslav Dudka, Governor of the Tula Region have inked a five-year Cooperation Agreement.

In pursuance of the Agreement, the parties express mutual interest in meeting the following paramount challenges:

• Further expanding gas deliveries to localities;
• Developing and improving sustainable gas deliveries to consumers;
• Developing capacities spurring wider use of compressed and liquefied gas as motor fuel;
• Developing and introducing gas saving technologies;
• Ensuring environmental safety and rational nature management;
• Developing and introducing a program to enhance the commercial gas consumption measurement accuracy and meteorological maintenance;
• Creating a comprehensive automated natural gas consumption and quality measurement system on the platform of the gas metering units used in the transmission, distribution, industrial and residential sectors;
• Implementing a housing construction program for the Gazprom Group’s current and retired employees being re-settled from the Extreme North.

The Agreement stipulates the implementation of joint measures aimed at improving the Regional energy balance and using alternative energies on a larger scale. Additionally, the parties will develop a Regional power conservation program targeted at the reduction of gas consumption through the use of state-of-the-art power saving technologies and gas-driven equipment.

The Regional Government is committed to providing timely and full payments for gas deliveries to budget-financed bodies as well as agreeing with gas distribution companies on special gas tariff additions intended for financing Regional gas supply programs.

Gazprom, on its part, will provide reliable natural gas deliveries to the consumers of the Tula Region given the United Gas Transmission System capacities, gas quotas annually allocated throughout Russia, adequate gas demand and consumers’ payments.

Reference:

Gazprom and the Tula Region first entered into a cooperation agreement in April 1999.

The natural gas infrastructure of the Tula Region is developed by 77.8 percent of maximum demand, including by 88.6 percent, in cities, towns and localities, and 40.2 percent, in rural area. The identical Russia-averaged parameters account for 53, 60 and 34.7 percent, respectively.

Between 2003 and 2004, Gazprom channeled RUR 226 mln to intensify gas consumption in the Tula Region, constructing gas distribution grids, and some 17.4 km of gas laterals to the Tabolovo and Sukhanovo settlements, upgrading the Yefremovskaya gas distribution station and, bringing into operation the communications & telemechanics devices at the Tabolovo – Sukhanovo gas lateral.

In 2004, Gazprom provided Regional customers with over 7.6 bcm of gas. As of 1 June 2005, the Region has received some 3.8 bcm.

As of 1 June 2005, the Tula Region’s gas debt to Gazprom accounted for RUR 347.91 mln, with the residential sector being the largest debtor. Regional industrial consumers have so far allocated RUR 474.3 mln in advance gas payments and have no gas arrears.

Current gas deliveries have been paid up at 92.24 percent.

DIVISION OF RELATIONS WITH MASS MEDIA