Today at Gazprom headquarters Alexei Miller, Chairman of Gazprom's Management Committee, held a working meeting with Oleg Bogomolov, head of Kurganskaya Oblast administration.

Alexei Miller and Oleg Bogomolov reviewed the progress in implementing Gazprom and Kurganskaya Oblast Cooperation agreement. Special emphasis was put on the region's gasification issues.

The parties discussed creating a unified gas distribution organization in Kurganskaya Oblast. It was noted that the creation of such an organization would facilitate balancing gas supply in the oblast, increasing safety and security of supply to the customers, and improving transparency of financial flows.

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Cooperation between Gazprom and Kurganskaya Oblast is based on the five year Agreement signed in February 2000.

Since 2003, gas supply in Kurganskaya Oblast is conducted by Gazprom and NOVATEK. In 2003, the oblast was supplied with more than 1 billion cubic meters of gas, including 307 million cubic meters of gas by Gazprom. In 2004, 1.2 billion cubic meters of gas is planned to be supplied, including Gazprom's 341 million cubic meters.

There are three gas distribution organizations currently operating in Kurganskaya Oblast: Kurganoblgaz, Kurgangorgaz and Shadrinskmezhraigaz. Gazprom holds stakes in Kurgangorgaz (35.7%), Shadrinskmezhraigaz (39.8%). There is no stake of Gazprom in Kurganoblgaz.

The consumers of the oblast have no debts for Gazprom's gas already supplied.

The level of gasification of Kurganskaya Oblast is 88%, including LNG. At the same time, the level of natural gas gasification is one of the lowest in Russia at the level of 15.1% (the average Russia indicator is 52.7%).

Gazprom participated in building 127 km of branch pipelines and 214 km of gas distribution networks, three gas distribution stations, and 6000 apartments' gasification implementing the 2002-2003 gasification program.

In 2004, according to the program, Gazprom is to invest around RUR 41.5 million into the development of Kurganskaya Oblast gas transportation network.

DIVISION OF RELATIONS WITH MASS MEDIA