The Government of the Kaluga Region approved the Gas Supply Investment Project elaborated by Promgaz, a Gazprom’s subsidiary. It is for the 1st time that a document like this has been produced and approved.

The Paper represents a comprehensive program on the Kaluga Region’s power supply system development and serves as a basis to determine prospective volumes of gas supplies to be channeled to the Region as well as to elaborate programs on upgrading and technically modernizing the gas transmission system and on developing the gas supply system of the Kaluga Region.

Carrying out its activities, Promgaz made a forecast for the Kaluga Region’s fuel and energy balance, meaning a system of offer and demand indices for the Regional energy resources. The fuel and energy balance is expected to become a principle instrument for elaborating the Kaluga Region’s long-term energy policy. The proposed fuel and energy balance indicates that power consumption is to grow 10% by 2010, with gas consumption up 3%. Based on the balance, Gazprom devised the General Scheme of gas deliveries to be channeled to the Kaluga Region.

Reference:

The Kaluga Region’s Gas Supply Investment Project was elaborated by Promgaz within the Cooperation Agreement between the Kaluga Region’s authorities and Gazprom, dated 2001 and the Agreement on Natural Gas Deliveries to the Kaluga Region, concluded between the Regional authorities and Gazprom in 2002.

For the time being, gas is delivered to 84.1% of the Kaluga Region’s territories, against 51.7% of Russia’s average. Almost all energy resources consumed in the Region are delivered from other Russian territories.

By analyzing the present-day fuel and energy balance of the Kaluga Region, Gazprom will be able to detect a range of negative gas consumption trends arisen in the past years. In particular, a several-time decline in the Regional production output has not driven down fuel and power consumption: fuel and electricity over consumption averages 30%. In addition, the Regional gas consumption reached some 90% not only in the residential but also in the power generation sector being the least efficient gas consumer.

The main factor, which is, likely, to foster changes in the negative trends of the Kaluga Region’s fuel and energy balance development, may become realisation of the Regional considerable energy saving potential, gradual increase in gas pricing as well as involvement of alternative types of fuel (primarily, lignite extracted from self-owned fields) in the fuel and energy balance.

Promgaz is a Gazprom’s subsidiary. The company’s major business lines are elaborating regional comprehensive energy projects and energy saving programs, general schemes of gas deliveries to the Russian regions, comprehensive gas supply investment projects, small-sized oil and gas field development projects and coal-bed methane extraction projects.

Promgaz is member of the Task Force Group for the Security of Natural Gas Supply within the UN Gas Centre; represents Gazprom’s interests in the World Business Council for Sustainable Development; takes part in the activities of the International Gas Union’s Committee N6 for Utilization of Gases for the Domestic, Commercial and Transportation Sectors.

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