A Board of Directors’ meeting has started at the Gazprom Headquarters.

The Board of Directors approved the progress recorded in 2006 with the implementation of the Gasification Program for RF Regions over 2005 to 2007.

The Board ordered to include in Gazprom’s 2007 budget not less than RUR 20.2 bln (RUR 8 bln up on previous projections) for the Program implementation purposes. Increased investments will enable to include in the Program 5 more RF constituents such as: the Irkutsk Oblast, Altai Republic, Dagestan, Karelia and Yamal-Nenets Autonomous Okrug.

“The implementation of the Gasification Program for RF Regions both by Gazprom and regional authorities is progressing successfully, with gasification facilities in a string of the constituents even being commissioned ahead of schedule. Gazprom will attentively monitor the fulfillment by regional heads of synchronized construction schedules for gasification facilities, particularly with regard to consumer preparation for gas supply. Naturally enough, the results of their work will be taken into account by Gazprom during investment planning for next year’s gasification targets.

If the Gasification Program is successful, a further 13 mln citizens of Russia will become natural gas consumers by as early as year-end 2007,” said Dmitry Medvedev.

Reference:

The Gasification Program for RF Regions over 2005 to 2007 previously earmarked RUR 35 bln of Gazprom’s investments including RUR 5.2 for 2005, RUR 17.6 bln for 2006 and RUR 12.2 bln for 2007. In accordance with the Board of Directors’ decision, total investments of Gazprom will grow to RUR 43 bln.

Out of RUR 17.6 bln allocated for the Program implementation in 2006 RUR 17 bln has been used to continue the construction (launched in 2005) of 131 gasification facilities and initiate the construction of 300 gasification facilities in 53 RF constituents and design & survey activities. RUR 600 mln has been allotted to devise general gas supply and gasification schemes in 17 RF constituents. Furthermore, in 2006 Gazprom invested RUR 1.1 bln to upgrade existing low pressure networks.

In 2006 a number of RF regional authorities requested Gazprom to defer gasification facility completion deadlines from 2007 to 2006. Construction deferrals have been agreed upon for 29 gasification facilities in 15 RF constituents.

Thus, in 2006 Gazprom financed the construction of 122 (versus 93 as previously scheduled) local gas pipelines with a total length of 1,313 km, which enabled to gasify 147 population centres, 410 thousand apartments and households including 180 thousand in cities & towns and 227 thousand in rural area. In addition, some 2 thousand residential institutions (hospitals, schools, kindergartens, etc.), 576 rural heating boilers and over 50 agricultural companies have been converted to natural gas.

To implement the Gasification Program for RF Regions over 2005 to 2007 Gazprom and 53 RF constituents signed synchronized construction schedules for gasification facilities.

This year Gazprom has fully complied with its commitments under said schedules.

As for the fulfillment of this year’s obligations under the schedules by RF regional authorities, 19 RF constituents managed to fully prepare consumers for gas supply and 10 regions coped with their tasks although falling behind the schedule.

In 17 RF constituents the local gas pipeline commissioning and consumer preparation for gas supply timing has been identified for 2007. The work in these regions is progressing according to schedule.

Investing in 2007 more funds in the Gasification Program for RF Regions over 2005 to 2007 has made it possible to incorporate in the Program another 5 RF constituents including the Irkutsk Oblast, Altai Republic, Dagestan, Karelia and Yamal-Nenets Autonomous Okrug. The year of 2007 is projected to see the gasification of 249 population centres, 696 thousand apartments and households including 311 thousand in cities & towns and 385 thousand in rural area, with some 3.6 thousand residential institutions, 980 rural heating boilers and 90 agricultural companies to be converted to natural gas.