Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Alexander Zhilkin, Governor of the Astrakhan Region have signed a network schedule for the construction of gasification facilities in the Astrakhan Region.

The Astrakhan Region’s network schedule is expected to provide a complex of works aimed at preparing consumers for gas deliveries within Gazprom’s large-scale pipeline construction, respectively, as stipulated by the gasification program for RF regions over 2005 to 2007.

“Gazprom is interested in not only construction of gas pipelines between settlements. We understand that gasification program must be considered complete only when the Region’s houses and apartments are gasified. The said program depends on synchronizing consumers’ preparation for gas deliveries and Gazprom’s pipeline construction. The document signed must solve the said issue,” said Alexey Miller.

In his turn, Alexander Zhilkin emphasized that Gazprom’s gasification program development is particularly important for the Region’s population as well as industrial sector.

“Between 2005 and 2007 the Regional leadership plans to construct 108 km of local gas pipelines, convert 30 heating plants to natural gas and gasify 5.5 thousand households, with RUR 150 mln to be committed for preparing consumers for gas deliveries,” said Alexander Zhilkin.

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 Alexander Zhilkin. The parties discussed issues on implementation of the gasification program for RF regions over 2005 to 2007 in the Astrakhan Region.

Reference:

The regular Agreement on cooperation between Gazprom and the Astrakhan Region’s authorities has been signed in the framework of Agreement expiration signed in 2000. Under the document signed, the basic cooperation directions are the following:

• The Astrakhan Region gasification;
• Implementation of the specified added value to gas transmission tariff rate for the Region’s gasification program investments;
• Perspective investment project implementation on the territory of the Region;
• Economically proven norms of gas consumption established by the Region’s authorities;
• Gazprom Group social & cultural and communal facilities joining municipal property.

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 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 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 Astrakhan Region’s residential sector is currently gasified by 70 per cent including by 81 per cent in cities, towns and population centers and 47 per cent in rural area.

In 2005 Gazprom provided the Region with 2 bcm of gas and this year Gazprom plans to provide the same volume of gas.