The Gazprom Management Committee approved the Concept and Regulations for participation of the independent gas producers in the company’s gas transportation system expansion, reconstruction, and upgrading.

Reference:

Gazprom is interested in expansion, reconstruction of gas transportation facilities with participation of independent gas producers (IGP). Additionally, up to this moment financial and juridical mechanism for IGP financing of gas transportation system (GTS) expansion and upgrading has not been developed. Within the IGP gas transportation, the only source of investment paybacks in IGP construction, reconstruction and upgrading is the tariff payments (regulated by the Federal Tariff Service of Russia) for gas transportation via gas mains.

On August 23, 2005, the Tariff Calculation Procedure for gas transportation via gas mains was approved by the Law for FST # 388-e/1. The procedure stipulates the tariff setting activity for pipelines commissioned back enabling to pay for investment project on a fixed date.

The Concept of IGP participation in expansion, reconstruction and upgrading of Gazprom’s GTS mirrors the principles for reliable functioning, necessary investments and financing for GTS expansion and upgrading. The document foresees offers on development and implementation of economically feasible mechanisms to attract IGP financial resources for expansion, reconstruction, and upgrading of Gazprom’s gas transportation capacities.

The Concept was developed due to the principles based on the RF legislation requirements for the Unified Gas Transportation System indivisibility.

In accordance with the Concept the schemes on expansion, reconstruction and upgrading of GTS are as follows:

• Investment project implementation without attracting IGP due to Gazprom’s financial resources;
• Providing IGP loans to Gazprom for GTS development (Loan scheme: financial and juridical scheme).

The Regulations of IGP participation in expansion, reconstruction and upgrading of Gazprom’s GTS identify the framework for solving problems appeared at the preparation of investment projects for Gazprom’s Gas Transportation System development aimed at creation of IGP gas transportation capacities.