The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Nikolai Denin, Governor of the Bryansk Oblast.

The parties discussed the progress with implementing the Agreement of Cooperation signed between Gazprom and the Bryansk Oblast Government. Special attention was paid to the regional gasification prospects. It was noted that the Bryansk Oblast Government was fully implementing the assumed obligations within the synchronized work schedule related to the preparation of consumers for gas deliveries.

The decision was taken to speed up the development of projects aimed at reconstructing a gas lateral to the Klintsy gas distribution station (GDS) and a gas lateral from the Starodub GDS to the Klimovo GDS.

Background:

The Agreement of Cooperation between Gazprom and the Government of the Bryansk Oblast was signed in May 2005.

In 2007 Gazprom supplied nearly 3 bcm of gas to the Oblast consumers, and approximately the same volumes are slated for the current year.

The Bryansk Oblast consumers have no gas arrears. As of September 1, 2008 advanced payments exceeded RUB 88 mln.

Natural gas penetration in the Bryansk Oblast accounts for 81.1 per cent including 93.8 per cent in cities and towns and 53.6 per cent in the rural area. The same figures throughout Russia average 62, 67 and 44 per cent respectively.

Between 2002 and 2007 Gazprom invested RUB 386.81 bln to gasify the Bryansk Oblast.

In 2008 Gazprom will additionally allocate RUB 150 mln for the regional gasification. These funds will be used to construct inter-settlement pipelines with the total length of 38.7 km. In its turn, the regional authorities will construct this year 12.8 km of gas distribution pipelines, convert three boiler houses to gas and prepare over 100 households for gas supplies.