From left to right: Alexander Mikhailov, Governor of the Kursk Region and Alexey Miller, Chairman of Gazprom's Management Committee

Today, at Gazprom's Headquarters, Alexey Miller, Chairman of Gazprom's Management Committee and Alexander Mikhailov, Governor of the Kursk Region have signed a network schedule for the construction of gasification facilities in the Kursk Region.

The Kursk Region's network schedule is expected to provide preparation of pipelines between settlements & gas networks within settlements after Gazprom's large-scale pipeline construction, respectively, as stipulated by the gasification program for RF regions over 2005 to 2007.

"During 2006-2007 Gazprom will construct twenty three pipelines between settlements. On their side, the Region's leadership obliged to deliver gas without delay. The document signed is directed to handle the said task", said Alexey Miller.

"The network schedule is particularly important for the Region's population and we do our best to realize the network schedule implementation. Within 2005-2007 the Kursk Region's leadership plans to provide construction of 317 kilometers of gas pipelines within settlements as well as gasify about 9 thousand households", underlined Alexander Mikhailov.

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 Alexander Mikhailov. The parties discussed issues on implementation of the gasification program for RF regions over 2005 to 2007 in the Kursk Region.

Alexey Miller and Alexander Mikhailov also discussed issues on implementation of Agreement on cooperation between Gazprom and the Kursk Region's authorities.

Reference:

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.

A 5-year agreement between Gazprom and the Kursk Region's leadership was signed in October 2002.

The Kursk Region's residential sector is currently gasified by 54 per cent including 75 per cent in cities, towns and population centers and 26 per cent in rural area.

In 2005 Gazprom provided the Region with 2 bcm of gas and this year Gazprom plans to provide the same volume of gas.