Alexey Miller, Chairman of Gazprom’s Management Committee and Valentina Matviyenko, Governor of the city of St. Petersburg today have signed a synchronized construction schedule for the city’s gasification facilities.

In accordance with the schedule, St. Petersburg’s suburbs will see a complex of activities aimed at preparing consumers for gas supply by Gazprom pipelines currently under sweeping construction as stipulated by the Gasification Program for RF Regions over 2005 to 2007.

“The needs in such an environmentally friendly and efficient fuel as natural gas are big not only in the industrial and agricultural sectors but also in the tourism industry. I am positive that gasifying St. Petersburg’s Kurortniy district inclusive will make the northern capital’s suburbs even more attractive for Russian and foreign guests with everyday life of the local population to become more convenient and enjoyable,” said Alexey Miller.

Valentina Matviyenko emphasized that St. Petersburg attached big significance to the Gasification Program for RF Regions as well as other Gazprom projects covering construction and upgrading of St. Petersburg’s thermal power facilities.

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

These schedules are part of 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 gasification rate 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 66 per cent in cities & towns and 42 per cent in rural area.

To achieve 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 boiler plants in villages & settlements and more than 500 agricultural companies, with 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.

Gazprom and the Government of St. Petersburg signed a five-year Agreement on Cooperation on December 25, 2003.

Under its Gasification Program for RF Regions, Gazprom intends to build 19 gas pipelines in St. Petersburg’s suburbs.

Over 2005 Gazprom has provided the city with more than 9 bcm of gas.