Alexander Ananenkov, Gazprom Management Committee Deputy Chairman, held a working meeting today with the Arkhangelsk Oblast delegation headed by Vladimir Gudovichev, Deputy Head of the region's administration. The meeting was held at Gazprom headquarters.

The parties discussed implementation of the Cooperation agreement between Gazprom and Arkhangelsk oblast.

Special attention was devoted to the issue of construction of a gas branch pipeline to the cities of Arkhangelsk and Severodvinsk. It was noted that Gazprom invested RUR 350 million into the project in 2004. Gazprom's draft investment program for 2005 stipulates the same amount of investment.

The parties agreed to finalize the working technical design at the part of the gas branch pipeline connecting the town of Mirnii in 2005. In 2005 the construction of the gas branch pipeline to the cities of Arkhangelsk and Severodvinsk will be carried out as planned.

Reference:

The five year Cooperation agreement between Gazprom and Arkhangelsk Oblast was signed on 5 October 2004. The agreement includes the planned construction of the gas branch pipeline to the cities of Arkhangelsk and Severodvinsk.

The agreement regarding construction of this gas pipeline between Gazprom, Severgazprom, and the administration of Arkhangelsk Oblast was signed on 13 December 2003. According to the agreement, the project financing is done on a pro rata basis among the participating parties (Gazprom - 36.5%, Severgazprom - 1%, Arkhangelsk Oblast administration - 62.5%).

147 km of the gas pipeline is already completed. The technical design for the 147-374 km part is carried out as planned.

Severgazprom is a wholly owned subsidiary of Gazprom. Severgazprom's gas transportation network spans more than 9300 km and includes 78 gas distribution stations.

DIVISION OF RELATIONS WITH MASS MEDIA