Makhachkala hosted today a joint meeting dedicated to the gasification of the Republic of Dagestan.

Participating in the meeting were Valery Golubev, Deputy Chairman of the Gazprom Management Committee; Maxim Bystrov, Deputy Plenipotentiary Envoy of the Russian Federation President to the North Caucasus Federal Okrug; Magomedsalam Magomedov, President of the Republic of Dagestan; representatives from Gazprom’s specialized subdivisions and subsidiaries – Mezhregiongaz, Gazprom transgaz Makhachkala, as well as from the Republic’s Administration.

Addressing the meeting Valery Golubev underlined that Gazprom paid particular attention to rural settlements when implementing the Russian Regions Gasification Program. “Gasification not only drastically changes the living conditions in the rural area, but also significantly improves the investment environment and gives a powerful impetus to the development of agricultural enterprises, thus raising the employment level among the citizens of gasified settlements,” he said.

Gazprom uses the same approach in the gasification of Dagestan in spite of the fact that the highland landscape complicates the construction of gas pipelines. “At the same time, the Dagestan Government generally meets its obligations on consumer preparation for gas deliveries,” highlighted Valery Golubev.

The meeting resulted in signing a protocol that sets out the top-priority actions on gasification of the Republic including consumer preparation for gas deliveries. The document places special emphasis on the need to create a unified gas distribution company in the Republic.

Background:

Gazprom and the Dagestan Government signed the Agreement of Cooperation in September 2003 for an indefinite period and the Accord on Gasification in January 2005. The General Scheme for Gas Supply to and Gasification of Dagestan was approved in 2007.

Natural gas penetration in the Republic of Dagestan amounts to 84.8 per cent including 99.8 per cent in cities and towns and 68.7 per cent in the rural area. Throughout Russia the identical figures average 63.2, 67.5 and 45.5 per cent accordingly.

Between 2007 and 2009 Gazprom invested some RUB 2.5 billion in Dagestan’s gasification.

In 2010 the Company will allocate RUB 1 billion within the gasification program. The funds will be used to construct in the Republic of Dagestan 25 inter-settlement and intra-settlement gas pipelines, with 21 gas pipelines planned to be completed this year.