The Gazprom Headquarters today hosted a meeting dedicated to gas supply and gasification of the Republic of Buryatia and the Chita Oblast. The meeting was moderated by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee.

Present at the meeting were heads and specialists of Gazprom core business units and subsidiaries – Mezhregiongaz and Promgaz.

The parties addressed the gasification prospects for the Republic of Buryatia and the Chita Oblast in light of the launch of the Eastern Program. In particular, it was emphasized that this year Gazprom would start developing General Schemes of gas supply to and gasification of the Republic of Buryatia and the Chita Oblast. The General Schemes will enable based on an economic viability study to determine gasification sources and ways as well as to adapt lead times to the natural gas market development in the regions.

According to the meeting results, the Company’s core business units were entrusted with launching the preparation of gas supply and gasification accords for Buryatia and the Chita Oblast, and Promgaz – with developing the General Schemes of gas supply to and gasification of the Republic of Buryatia and the Chita Oblast.

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The Republic of Buryatia doesn’t have natural gas supply infrastructure. Liquefied petroleum gas penetration in Buryatia’s residential sector is at 13.3 per cent including 2.6 per cent in cities and towns and 28.5 per cent in rural areas. Gazprom doesn’t supply LPG to the Republic.

At present, a Cooperation Agreement between Gazprom and the Administration of the Republic of Buryatia is being prepared for signing.

Gazprom and the Chita Oblast entered into a Cooperation Agreement in July 2006.

The Chita Oblast doesn’t have natural gas supply infrastructure. LPG penetration in the residential sector is at 47.7 per cent including 38 per cent in cities and towns and 65 per cent in rural areas. Gazprom doesn’t supply LPG to the region.

The September 3, 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Program). Gazprom was named by the Russian Government as the Eastern Program coordinator.

Four new gas production centres are planned to be created under the Program on the Sakhalin Island, in the Republic of Sakha (Yakutia), Krasnoyarsk Krai and Irkutsk Oblast. The Eastern Program implementation will enable in the first place to meet current and future demand for gas in Eastern Siberia and the Far East as well as to launch both pipeline gas and LNG exports to the Asia-Pacific region.