The Board of Directors approved Gazprom's gas supply and gasification efforts taken in the Volgograd Oblast.

The Management Committee was tasked to continue implementation of the Volgograd Oblast Gas Supply and Gasification Program for 2011–2013.

Background

Cooperation between Gazprom and the Volgograd Oblast Administration has a strategic character.

Between 2006 and 2010 the region was enriched by 37 production and infrastructure facilities of Gazprom with the total investments of some RUB 5.7 billion.

The Volgograd Oblast will be one of the regions covered by the construction of the Southern Corridor (a new gas transmission system). The gas transmission system will help supply additional gas volumes to a number of central and southern Russian regions as well as to feed gas to the South Stream gas pipeline.

Besides, Gazprom is actively constructing the Volgograd underground gas storage (UGS) facility in a salt cavern. The new UGS facility is expected to become operational in the autumn/winter period of 2013–2014.

The Gasification Accord between Gazprom and the Volgograd Oblast Administration was signed in December 2010. The total volume of Gazprom's investments in the Oblast gasification exceeded RUB 2.8 billion from 2003 to 2010. These funds were allocated for the construction of 42 inter-settlement gas pipelines with the total length of 839.3 kilometers. It helped reach an 80 per cent gasification level in the region (Russia's average – 63.1 per cent).

According to the Russian Government Order, Gazprom developed the Volgograd Oblast Gas Supply and Gasification Program for 2011–2013. The document stipulates that the Company's funds are allocated for construction of 258 inter-settlement gas pipelines with the total length of 3 thousand kilometers, 4 gas laterals, 4 gas distribution stations (GDS) as well as reconstruction of 38 operational GDS and 2 gas laterals between 2011 and 2013 in the Volgograd Oblast. Gazprom is going to spend over RUB 21 billion for the above mentioned activity.