Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Vladimir Kulakov, Governor of the Voronezh Region have inked a network schedule for the construction of gasification facilities in the Voronezh Region.

Within the network schedule, the Voronezh Region will provide a complex of works aimed at preparing consumers for gas deliveries and Gazprom’s pipeline construction, respectively, as stipulated by the gasification program for RF regions over 2005 to 2007.

Alexey Miller and Vladimir Kulakov held talks on implementation of Agreement between Gazprom and the Voronezh Region’s authorities.

“The gasification program is directly connected with gas supplies to final consumers. The people who live especially in the rural area are not only to know what Gazprom’s construction of gas pipeline between settlements to their households. They need gas to be delivered to their houses and apartments. It depends on how the Region’s authorities will synchronize preparation for gas deliveries with Gazprom’s construction of gas pipeline between settlements. The signed document refers to accomplishment of the said task force”, said Alexey Miller.

“We understand the positive changes that natural gas does to people and we have been always paying special attention to gasification issues. The Region’s funds including from business and population are aimed at investment allocation for construction of gas pipelines within settlements & households. With regard to the gasification program for RF regions over 2005 to 2007, we have enhanced the work on the Region’s gasification program. RUR 3.1 bln are planned to be committed from the funds of the Region’s government, business units and population”, underlined Vladimir Kulakov.

The network schedule signing was preceded by a working meeting between Dmitry Medvedev, RF First Deputy Prime Minister & Chairman of Gazprom’s Board of Directors and Vladimir Kulakov. The parties discussed issues on implementation of the gasification program for RF regions over 2005 to 2007 in the Voronezh Region.

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The network schedule of gasification identifies an activity list and implementation dates for gas infrastructure facilities in 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 grids, build new or convert to gas existing heating plants, install household gas appliances, etc.

Network schedules are signed for the implementation 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 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, with an excess of 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.

The Voronezh Region’s residential sector is currently gasified by 66,1 per cent including 83,5 per cent in cities, towns and population centers and 36,2 per cent in rural area.

The Agreement on cooperation between Gazprom and the Voronezh Region’s administration was signed in 2003 for five years.

In 2005 Gazprom provided the Region with 5 bcm of gas and this year Gazprom plans to provide the same volume of gas.