Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Vladimir Chub, Governor of the Rostov Region, have signed a network schedule for the construction of gasification facilities in the Rostov Region.

Within the network schedule, the Rostov Region will provide a complex of works aimed at preparing consumers for gas deliveries and Gazprom’s pipeline construction, respectively, as stipulated by the gasification program for RF regions over 2005 to 2007.

Alexey Miller and Vladimir Chub also discussed issues on implementation of Cooperation Agreement between Gazprom and the Rostov Region.

“Gasification program will be considered complete when gas will be delivered to all houses and apartments. It depends on how the Region’s authorities will synchronize preparation for gas deliveries with Gazprom’s construction of gas pipeline between settlements. The signed document refers to accomplishment of the said task”, said Alexey Miller.

“We understand that implementation of Gazprom’s gasification program is very important for every consumer in the Region and we are in charge of the final result of gasification program implementation. Between 2005 and 2007 the Rostov Region’s leadership plans to provide a construction of 206 km of in-settlement gas pipelines; to convert 73 heating plants to natural gas and to gasify 7300 thousand households. The Region’s leadership plans to commit RUR 309 mln from the Region’s funds”, emphasized Vladimir Chub.

The network schedule signing was preceded by a working meeting between Dmitry Medvedev, RF First Deputy Prime Minister & Chairman of Gazprom’s Board of Directors and Vladimir Chub. The parties discussed issues on implementation of the gasification program for RF regions over 2005 to 2007 in the Rostov Region.

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The network schedule of gasification identifies an activity list and implementation dates for gas infrastructure between 2006 and 2007, and is aimed at providing gas connections to consumers immediately upon pipeline completion. To connect consumers, regional authorities are to construct local and household networks, build new or convert to gas existing heating plants, install household gas appliances, etc.

Network schedules are signed to implement Gazprom’s gasification program for RF regions over 2005 to 2007, which is funded with RUR 35 bln. Of this amount, RUR 5.2 bln was already committed in 2005 and not less than RUR 17.6 bln and RUR 12.2 bln is slated for 2006 and 2007, respectively. Extra RUR 1.1 bln will be allocated for the reconstruction and modernization of existing gas distribution pipelines.

At present the Russia-averaged level of gasification makes up 53 per cent including 60 per cent in cities & towns and 34 per cent in rural area.

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

To achieve the said targets, Gazprom will provide gas to 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 residential facilities (hospitals, kindergartens, schools, etc.), over 5 thousand heating plants in villages & settlements and more than 500 agricultural companies, more than 12 thousand km of pipelines to be laid and some 11 mln citizens of 53 Russian regions to be serviced.

Gazprom’s investment priorities for regional gasification are 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.

The Rostov Region’s residential sector is currently gasified by 65 per cent including 77 per cent in cities, towns and population centers and 39 per cent in rural area.

At present, 53 out of 55 municipal housing units have been gasified.

Cooperation Agreement between Gazprom and the Rostov Region’s leadership was signed in September 2002 for five years.

In 2005 Gazprom provided the Region with 6,7 bcm of gas and this year Gazprom plans to provide the same volume of gas.