Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Anatoly Artamonov, Governor of the Kaluga Region have signed a network schedule for gas supply infrastructure construction in the Kaluga Region.

Under the documents signed, the Regional authorities will be responsible for synchronizing the preparation of consumers for gas deliveries with the pipeline construction by Gazprom. The network schedule identifies an activity list and implementation date for gas infrastructure between 2006 and 2007, and is aimed at providing gas connections to consumers immediately upon pipeline completion.

“Signing network schedules for gas supply opens a new phase in the relationships between Gazprom and Russian regions in the gas sector. The network schedule helps maximally reduce the time between pipeline gas arrivals and supplies to consumers. This is particularly important for planning gas deliveries to rural areas. Moreover, both Gazprom and regional authorities bear full responsibility for the implementation of a gas supply program,” said Alexey Miller.

“The Kaluga Region’s leadership is committed to scrupulously implementing the network schedule for gas supply and adequately preparing consumers for gas deliveries. This is a top priority for us as pipeline gas cardinally changes the quality of life, improves the socioeconomic situation in the Region, particularly in rural areas.

The Kaluga Region’s investment in the gas supply program is projected to exceed Gazprom’s funds to be committed for the same purposes,” said Anatoly Artamonov.

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Network schedules are signed for the implementation of Gazprom’s Program on gas supply to the RF regions over 2005 to 2007, with RUR 35 bln earmarked to this end for 53 constituents of the Russian Federation.

The present-day Russia-averaged level of natural gas supply accounts for 53 per cent including 60 per cent in cities & towns and 34 per cent in rural area.

Between 2005 and 2007 Gazprom plans to commit RUR 35 bln for constructing gas infrastructure and supplying gas throughout the Russian Federation, with including RUR 5.2 bln already channeled for these purposes in 2005 and not less than RUR 17.6 bln and RUR 12.2 bln slated for 2006 and 2007, respectively. Extra RUR 1.1 bln will be allocated for the reconstruction and modernization of existing gas distribution pipelines.

Implementing the Program on gas supply over 2005 to 2007 will help boost gas supply to Russian regions to a 60 per cent average by 2008 already, including to 66 per cent in cities & towns and 42 per cent in rural area.

To achieve said targets, Gazprom will deliver gas to a further 3,851 thousand apartments & households including 2,673 thousand in cities & towns and 1,178 thousand in rural area.

The Program will enable Gazprom to convert to natural gas about 20 thousand new household institutions (hospitals, kindergartens, schools, etc.), over 5,000 heating boilers in villages & settlements and more than 500 agricultural companies, with an excess of 12,000 km of pipelines to be laid and some 11 mln people to be serviced.

Gazprom’s investment priorities for regional gas supply will be determined based on the following criteria: full payments for gas deliveries; repayment of gas debts; economic viability of projected gas infrastructure; customers’ readiness to receive gas; actual loading of gas laterals and distribution stations; assistance of RF regional authorities in promoting the use of compressed and liquefied natural gas as motor fuel.

Over 2005 Gazprom furnished the Kaluga Region with 1,810 mln cu m of gas. As of January 1, 2005, the Region’s gas debt accounted for RUR 213.85 mln, with the bulk owed by the residential sector where gas supply infrastructure is developed by 69.5 per cent of maximum demand, including 82.4 per cent in cities & towns and 33.2 per cent in rural area.