Since January 1, 2004, Gazpromenergo, a 100% Gazprom’s subsidiary, has got an opportunity to purchase electricity on the Federal (All Russian) Wholesale Electricity Market (FOREM) and, in the nearest future, to supply it at wholesale prices to Severgazprom’s technological facilities situated in the Vologda Region.

In future, Gazpromenergo will provide electricity to other Gazprom’s subsidiaries. For this purpose, on January 1, 2004, Gazprom granted the equipment of Gazprom’s 14 most power-consuming gas processing and transportation companies, powered from the United Energy System of Russia, by lease to Gazpromenergo.

In addition, Gazprom adopted a resolution to grant Gazpromenergo a RR 720 million purpose-oriented loan for developing a multi-level regional fully automated electricity measurement system which will cover the most power-consuming technological facilities of Russia’s United Gas Transmission System.

In the next 1.5 - 2 years, Gazpromenergo will gradually shift over majority of Gazprom’s subsidiaries to the FOREM-based power supply. As a result, the Gazprom Group’s electricity procurement expenditures over the above-mentioned period are expected to decrease by 10-15%.

Reference:

On October 28, 2003, the RF Federal Energy Commission ordered to include Gazpromenergo in the List of Non-commercial Organizations – FOREM Members - as a power supply company.

In 2003, the Russian JSC “Unified Energy System of Russia” supplied some 15 billion kW/h of electricity to the Gazprom Group of companies.

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