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

The meeting focused on the gas supply system development in the Kirov Oblast.

The meeting participants noted that Gazprom annually increased investment in the Okhansk – Kirov gas lateral reconstruction. In 2010 the Company allocated RUB 100 million for this purpose with RUB 350 million slated for this year. Gazprom is planning to accomplish reconstruction of the gas pipeline by no later than 2015.

The parties also discussed an opportunity for the Company to acquire gas distribution stations constructed at the expense of the regional budget. This issue will be considered by Gazprom after the regional Government provides the required documents.

Background

The Agreement of Cooperation was inked by Gazprom and the Kirov Oblast Government in 2004 and extended in May 2009 for an indefinite period. The parties entered into the Accord on Gasification in December 2001.

Between 2006 and 2010 Gazprom invested over RUB 3.6 billion in the Kirov Oblast gasification. The gasification level in the Oblast is currently at 33.1 per cent. The same figure throughout Russia averages 63.2 per cent.

In 2011 Gazprom is planning to invest RUB 477 million for construction of 10 inter-settlement gas pipelines with the overall length of 107 kilometers.

343-kilometer-long Okhansk – Kirov gas pipeline with the working pressure of 55 atmospheres delivers gas to the bulk of the Kirov Oblast residents. However, in view of a considerable service life of the gas pipeline, its working pressure and throughput capacity have been lowered.