Ulan-Ude hosted today a meeting moderated by Alexey Miller, Chairman of the Gazprom Management Committee and Vyacheslav Nagovitsyn, President – Chairman of the Government of the Republic of Buryatia. The meeting was dedicated to the region gasification.

Alexey Miller informed the meeting participants on the progress with the state-run Eastern Gas Program being implemented by Gazprom. He stressed that the major objective of the Program was to gasify Eastern Siberia and the Far East. Due to the vast area and the scarce population, the Company will apply various approaches such as autonomous gasification using energy alternatives such as liquefied and compressed natural gases, or liquefied petroleum gas (LPG).

Notably, gasification of Buryatia will be divided into three stages. At the first stage Gazprom will focus on local gasification with liquefied petroleum gas. The second stage will be specific with liquefied natural gas utilization in addition to LPG. Pipeline natural gas will be supplied to a number of settlements at the third stage that will begin after establishing the required resource base.

Alexey Miller pointed out that Gazprom had already selected some top-priority facilities in Buryatia for gasification with liquefied petroleum gas. These are an 8,000-ton filling station planned for construction in Ulan-Ude and nine boiler houses in the settlements of Ivolginsk, Sotnikovo, Tarbagatai, Sharaldai, Mukhorshibir and Dolga.

Following the meeting results, Alexey Miller and Vyacheslav Nagovitsyn signed the 2010–2013 Prioritized Action Plan on gas supply to and gasification of the Republic of Buryatia.

The document defines joint efforts of Gazprom and the Republican Government as part of the region gasification with liquefied petroleum gas.

An extended list of top-priority gasification facilities will be specified and project documentation will be developed under the Plan.

The parties will develop a program for the region gasification with liquefied petroleum gas and the program implementation schedules. Meanwhile, the Government of the Republic of Buryatia will ensure construction of intra-settlement gas pipelines and prepare consumers for gas supply.

In addition, Alexey Miller and Vyacheslav Nagovitsyn held a working meeting and discussed Gazprom’s possible participation in LPG gasification of Severobaikalsk and the population centers in the Pribaikalsky, Kabansky, Zaigraevsky and Selenginsky Districts. It was noted that Gazprom would perform an additional feasibility study to take a decision on this issue.

The meeting participants specifically considered the creation of favorable economic conditions for gasification projects execution in Buryatia. In particular, they discussed the need to annually allocate funds in the regional budget for gasification facilities construction and to arrange the financial support system intended for assisting the population in households preparation for gas supply.

Background:

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the state-run 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 Gas Program). Gazprom was appointed by the Russian Government as the Program execution coordinator.

Gazprom and the Republic of Buryatia inked the Agreement of Cooperation and the Accord on Gasification in 2008. The General Scheme for gas supply to and gasification of the region was approved in  2009.

At present, the Republic of Buryatia doesn’t receive natural gas. The average LPG penetration level in the region is  14.9 per cent. Gazprom doesn’t supply LPG to the Republic.

In December 2009 the Gazprom Management Committee approved the updated Concept for the gasification of Russian regions. The Concept envisages Gazprom’s differentiated participation in the gasification process depending on the availability and the development level of  natural gas reserves in the regions, as well as on the use of fuel alternatives including liquefied and compressed natural gases, or liquefied petroleum gas.