Led by Alexey Miller, Chairman of the Gazprom Management Committee, the Company’s delegation took a business trip to Irkutsk.

As part of the trip, Alexey Miller met with Dmitry Mezentsev, Governor of the Irkutsk Oblast. The parties addressed the regional gasification and gas supply related issues.

Special attention was paid to developing gas production from the Chikanskoye field and to elaborating the synchronization schedule for preparation of the population centers located near the Chikanskoye gas and condensate field (GCF) – Sayansk – Angarsk – Irkutsk gas trunkline being designed. Under consideration was also the issue relevant to constructing phase 2 of the Bratskoye GCF – Bratsk gas trunkline.

The meeting underlined the importance of creating the optimal economic environment in the region to deliver investment projects in the gas processing and gas chemical sectors.

A joint working meeting on gas supply to and gasification of the region took place between working groups of Gazprom and the Irkutsk Oblast Government.

It was emphasized that one of the new gas production centers would be created in the Irkutsk Oblast according to the Eastern Gas Program. In parallel, natural gas will play a significant role in the regional socio-economic development both through gasification activities and through construction of advanced gas processing and gas chemical facilities.

The meeting resulted in the endorsement of the Minutes of the Meeting. Under the document, the working groups should, inter alia, elaborate the gas pricing principles for the regional consumers and compile the consumer preparation schedule within the project for the Bratskoye GCF – Bratsk gas trunkline construction, phase 2. 

Alexey Miller and Dmitry Mezentsev signed the Agreement of Cooperation between Gazprom and the Irkutsk Oblast Government.

The document identifies the Eastern Gas Program execution in the region as the prioritized cooperation target.

In this regard, the Agreement envisages the following paramount cooperation areas:

- study and delivery of efficient projects in field prospecting, exploration and development, as well as hydrocarbon processing and transmission;

- elaboration and execution of gas supply and gasification programs;

- advancement of the gas processing and gas chemical industries;

- production and utilization of gas as a transport fuel;

- development and adoption of gas saving technologies;

- creation of the comprehensive eco-monitoring system.

According to the document, the parties recognize the necessity to improve the regional fuel and energy structure and to apply the market-based gas prices that would sustain competition with other fuels.

The Irkutsk Oblast Government will support investment projects related to hydrocarbons production, gas supply and gasification, energy saving and environmental improvement in the region, including adoption of regulations on tax incentives for the companies involved in such projects.

Gazprom will be assisted in allocation of lands for production facilities construction.

The document is signed for an indefinite period.

Alexey Miller and Dmitry Mezentsev took part in the ceremony of laying the foundation stone in the water sports center construction. Gazprom resolved to finance the complex construction as part of preparations for the 350th anniversary of Irkutsk.

 “Construction of a modern water sports center will be a wonderful anniversary gift for the city. The new center will not only enable swimming lessons, but water sports competitions including those at the international level as well.

I am convinced that the water sports center will help reinforce the traditions of a healthy lifestyle and is most likely to become a training ground for nurturing new Olympic champions who will bring glory to Irkutsk and entire Russia,” said Alexey Miller.

Background:

The Agreement of Cooperation between Gazprom and the Irkutsk Oblast Administration was signed in February 2004, the Accord on Gasification – in December 2009.

The General Scheme for Gas Supply to and Gasification of the Irkutsk Oblast was approved by the Directive of the Irkutsk Oblast Government in 2005. Due to the approval of the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program) by the September 2007 Order of the Russian Federation Industry and Energy Ministry, the General Scheme had to be updated.

In December 2009 the General Scheme for Gas Supply to and Gasification of the Irkutsk Oblast was finally developed. It includes creation of the Irkutsk gas production center provided for in the Eastern Gas Program. It also optimizes the regional fuel and energy structure, revaluates the natural gas demand in the region and adjusts the hydrocarbon resource production strategy. The new version of the document contains the adjusted development scheme for gas trunkline facilities and gasification schemes for the Irkutsk Oblast. Besides, the Scheme optimizes development options for improving the existing and creating the new processing facilities.

In December 2007 the first phase of the Bratsk GCF – Bratsk (45th residential district) gas trunkline was constructed and natural gas deliveries to the city commenced. Bratsk was the first population center of the Irkutsk Oblast to receive pipeline gas. The total length of the first-phase section is 26.6 kilometers. Upon construction of the Bratsk GCF – Bratsk gas trunkline, its total length will amount to nearly 70 kilometers.

In 2007–2009 Gazprom allocated RUB 595 million for the regional gasification. These funds were used to construct the Osinovka GDS – Zyaba settlement and the Osinovka GDS – Gidrostroitel settlement gas pipelines.

The celebrations devoted to the 350th anniversary of Irkutsk will take place in 2011. Gazprom is on the Organizing Committee for the anniversary celebrations in the city. The preparations for the festivities are underway in compliance with the Russian President’s Decree on Celebrating 350th Anniversary of Irkutsk of August 2, 2009 and the Russian Government’s Directive of July 1, 2010.

The water sports center will be designed for Russian and foreign sport teams training, water sports competitions organization including those at the international level as well as for swimming and physical training of kids and adults.

It is planned to finish the construction of the center in 2012.