Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Anatoly Lisitsyn, Governor of the Yaroslavl Region have signed a synchronized construction schedule for regional gasification facilities.

In accordance with the schedule, the Yaroslavl Region will see a complex of works aimed at preparing consumers for gas supply by projected Gazprom pipelines currently under sweeping construction as stipulated by the gasification program for RF regions over 2005 to 2007.

“The document signed is targeted at synchronizing the gasification infrastructure commissioning by Gazprom with the Regional authorities’ efforts to timely prepare consumers for expanded gas supply. There is also the need of synchronizing gasification funding at the regional and municipal levels. A gasification program can only be deemed entirely fulfilled when gas reaches end users. The priority will be given to rural population. Consumer readiness for gas supply depends primarily on regional governments”, said Alexey Miller.

“Between 2005 and 2007 the Yaroslavl Region’s leadership plans to construct 32.5 km of in-settlement gas pipelines, convert to natural gas 5 heating plants and gasify 1,173 households with more than RUR 200 mln planned to be committed for these purposes. Within this year we will largely focus on engineering gasification facilities and in 2007we’ll move on to their construction”, said Anatoly Lisitsyn.

Gazprom’s Headquarters has also convened a working meeting between Dmitry Medvedev, RF First Deputy Prime Minister & Chairman of Gazprom’s Board of Directors and Anatoly Lisitsyn. The parties discussed issues surrounding the implementation of the gasification program for RF regions over 2005 to 2007 in the Yaroslavl Region.

Reference:

A synchronized construction schedule for regional gasification facilities identifies an activity list and implementation dates for gas infrastructure between 2006 and 2007. The schedule 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.

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 help boost gas supply to Russian regions to a 60 per cent average by 2008 including to 66 per cent in cities & towns and 42 per cent in rural area.

To achieve said targets, Gazprom will supply 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 living in 53 Russian regions to be serviced.

Gazprom’s investment priorities for regional gasification are 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.

Gazprom and the authorities of the Yaroslavl Region signed a five-year Agreement on cooperation on February 28, 2005. To promote the Agreement, in December 2003 the parties sealed an Accord on gasification.

The Yaroslavl Region is currently gasified by 66 per cent including 82 per cent in cities, towns & population centers and 17 per cent in rural area. In 2006 Gazprom plans to construct 4 local gas pipelines in the Region.

In 2005 Gazprom provided Regional consumers with more than 2.8 bcm of gas and roughly the same amount is slated for this year.