Today, at the Gazprom Headquarters, Alexey Miller, Chairman of the Gazprom Management Committee and Alexander Zhilkin, Governor of the Astrakhan Oblast.

The parties discussed the progress with implementing the Agreement for cooperation between Gazprom and the Astrakhan Oblast.

Particularly, the meeting examined issues relevant to the regional gasification as stipulated by the gasification program for RF regions over 2005 to 2007 as well as issues relevant to the regional debt payment for the gas delivered. The parties also discussed the prospects for the gas-stream power station construction and polyethylene production capacities at the Astrakhan gas processing plant.

Reference:

The Agreement for cooperation and the Agreement for gasification between Gazprom and the Astrakhan Regional Administration were signed in April 2006 and February 2000, respectively.

In 2006 Gazprom supplied nearly 2 bcm of gas and the same amount is slated for this year.

The Astrakhan Oblast is currently gasified by 69.5 per cent including 81.6 per cent in cities, towns & urban settlements and 46.9 per cent in the rural area. The average rates in Russia are at 53 per cent, 60 per cent, 34 per cent, respectively.

Over 2002 to 2006 Gazprom committed nearly RUR 1.4 bln for gasification of the Astrakhan Oblast gasification particularly for construction of 3560 km of gas pipelines aimed at gasifying 143 settlements, converting to natural gas more than 700 housing facilities.

In pursuance with the 2005-2007 gasification program, in 2007 Gazprom plans to commit RUR 470 mln for construction of 23 local pipelines and 11 out of said 23 local pipelines are planned to be commissioned this year.

In 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.

Within 2006 the indebtedness of regional consumers for gas delivered increased by RUR 209.2 mln and only within January 2007 the indebtedness increased by RUR 152 mln and as of February 1, 2007 it exceeded RUR 552 mln.