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

In accordance with the schedule, the Vologda 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 top priority for us is to deliver gas to the rural area. Gas deliveries to rural consumers are not only an improvement of living standards but also a strong impulse for the agricultural development and rehabilitation of the rural area.

I’m definitely sure that together with the Vologda Region’s authorities Gazprom will significantly raise the rural area’s gasification level”, specified Alexey Miller.

“Between 2006 and 2007 the Vologda Region’s authorities plan to commit RUR 79.5 mln to construct nearly 10 km of in-settlement gas pipelines and to make natural gas-powered 5 heating plants and 912 households”, said Vyacheslav Pozgalyov.

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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, 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 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 Vologda Region is currently gasified by 50 per cent (77 per cent in cities & towns and 11 per cent in rural area).

Under the gasification program for RF regions in 2006 Gazprom plans to construct in the Vologda Region 2 local gas pipelines with a total length of over 48 km.

In 2005 Gazprom provided its Regional customers with some 6.4 bcm of gas.