The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Alexey Kuzmitsky, Governor of the Kamchatka Krai and Chairman of the Krai Government.

The parties discussed the implementation of the Agreement of Cooperation and the Accord on Gasification signed between Gazprom and the Kamchatka Krai Government.

It was emphasized that the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project was on schedule.

Background:

Gazprom and the Kamchatka Krai Government inked the Accord on Gasification of the Kamchatka Krai in January 2008, the Agreement of Cooperation – in February 2009.

In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to get involved in the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project Gazprom carries out pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields on the western coast of the Kamchatka Peninsula, as well as construction of the Sobolevo – Petropavlovsk-Kamchatsky gas trunkline to be commissioned in  2010. Out of the total length of the trunkline route making up 392 kilometers, 364 kilometers have been built as of March 1, 2010. Production drilling and pre-development operations are underway in the Kshukskoye and Nizhne-Kvakchikskoye fields.

The gasification level in the Kamchatka Krai is below 1 per cent (LNG is not supplied).

In 2009 Gazprom developed the General Scheme for gas supply to the Kamchatka Krai. During the same year the Company allocated RUB 275 million to  gasify the Kamchatka Krai. The funds were invested in engineering and construction of a gas pipeline from the automated gas distribution station (AGDS) in Petropavlovsk-Kamchatsky to CHPP-2. In 2010 Gazprom invested another RUB 725 million in the pipeline completion.

On its part, the Kamchatka Krai Government will ensure conversion of CHPP-2 in Petropavlovsk-Kamchatsky to natural gas.