Today, at Gazprom’s Headquarters, Aleksey Miller, Chairman of Gazprom’s Management Committee and Alexander Karlin, Governor of Altai Territory, have signed the network schedule for the construction of gasification facilities in the Altai Territory.

According to the document, complex of works will be accomplished in the Altai Territory to prepare consumers for gas supply after Gazprom’s large-scale pipeline construction as stipulated by the gasification program for RF regions over 2005 to 2007.

“Gazprom’s gasification program will give new impetus to the development of Russia’s industry and agriculture. Gas supply is especially important for the regions where gasification level is still too low, such as, for example, the Altai Territory. I think the regional authorities should pay special attention to pipeline grid laying within settlements and streets”, noted Aleksey Miller.

“We understand how important Gazprom’s gasification program for the Altai Territory. Therefore, in 2006 and 2007 the regional authorities plan to commit nearly RUR 2.5 bln (from the regional and other budgets) to construct pipelines within settlements”, said Alexander Karlin.

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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.

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 Altai Territory’s leadership was signed in July 2004.

The Altai Teritory’s residential sector is currently gasified by 4 per cent including 6 per cent in cities, towns and population centers and 1 per cent in rural area. In 2006 Gazprom plans to construct 11 pipelines between settlements with total extension of 169 km in the Altai Territory. One such pipeline is planned to be already in operation this year.

In 2005 Gazprom provided the Region with more than 600 mcm of gas and this year Gazprom plans to provide approximately the same volume of gas.