The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Alexander Mikhailov, Governor of the Kursk Oblast.

The parties addressed the progress with the Cooperation Agreement and the Gasification Accord between Gazprom and the Oblast Administration.

The meeting noted the successful results of the Russian Regions Gasification Program. The operations on gas pipelines construction and consumers preparation for gas supply were carried out on a timely basis and some regions moved ahead of schedule. Thus, the Kursk Oblast gas penetration level was brought up to 70.4 per cent featuring a 13.6 per cent increase. The identical figure throughout Russia averages 63.2 per cent.

Therefore, the parties considered an opportunity of putting six inter-settlement gas pipelines on-stream ahead of schedule in the current year. It was stressed that Gazprom would take a positive decision on this issue in case of consumer readiness for gas supply.

Background:

The open-ended Cooperation Agreement between Gazprom and the Kursk Oblast Administration was signed in December 2002, the Gasification Accord – in March 2007.

Between 2005 and 2009 Gazprom invested over RUB 3.5 billion in the Kursk Oblast gasification.

In 2010 Gazprom allocated RUB 530 million for the Kursk Oblast gasification. These funds were spent to start constructing 13 inter-settlement gas pipelines with another 7 being designed and investigated.