Today, at Gazprom Headquarters Alexey Miller, Chairman of Gazprom’s Management Committee, and Alexander Tkachev, Governor of the Krasnodar Territory, have signed a synchronized construction schedule for regional gasification facilities.

In accordance with gasification schedule, the Krasnodar Territory will provide a complex of works preparing consumers for gas supply aimed at Gazprom’s large-scale construction as stipulated by the gasification program for RF regions over 2005 to 2007.

“The implementation of gasification program is very important for resort areas. This program raises the standard of living and improves environmental conditions. Certainly, said issue concerns the Krasnodar Territory. Gazprom plans to continue construction of four gas pipelines as well as to build five new pipelines between settlements”, said Alexey Miller.

“We are ready to prepare the consumers for gas supply. In the framework of the signed document, the Krasnodar Territory will construct 265 km of local pipelines, convert 38 heating plants to natural gas and gasify more than 6600 households at the expense of the Territory’s funds during 2005-2007. For this purpose, the Krasnodar Territory’s authorities plan to commit approximately RUR 684 mln”, emphasized Alexander Tkachev.

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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 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 agreement for cooperation between Gazprom and the Krasnodar Territory’s leadership was signed in February 2004.

The Krasnodar Territory is currently gasified by 68.4 per cent (79.5 per cent in cities & towns and 54.8 per cent in rural area).Over 2001 to 2005 Gazprom constructed 75 gas pipelines with total length of 536 km in the territory.

In 2005 Gazprom provided the territory with more than 7 bcm of gas.