The village of Chemal (Republic of Altai) hosted today a meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Alexander Berdnikov, Head of the Altai Republic and Chairman of the Altai Government. The meeting was dedicated to delivery of regional gas transmission and gasification projects.

Taking part in the meeting were Members of the Gazprom Management Committee: Oleg Aksyutin, Head of the Gas Transportation, Underground Storage and Utilization Department, Yaroslav Golko, Head of the Investment and Construction Department and Viktor Ilyushin, Head of the Department for Relations with the Russian Federation Authorities as well as heads and experts from Gazprom's specialized structural units and subsidiaries.

The meeting was also attended by Members of the Altai Government and Ivan Belekov, Chairman of the Altai Republic State Assembly (El Kurultai).

“The Republic of Altai is a strategic partner of Gazprom. Starting from 2007, we have taken a sustained and proactive approach to joint gasification of the region. As a result, natural gas has arrived in two largest population centers of Altai: Gorno-Altaisk and the Maima village. Underway is the construction of inter-settlement gas pipelines to another five population centers. Gazprom and the Altai Government fully comply with the synchronization schedule,” highlighted Alexey Miller in his opening speech.

The Gazprom Management Committee Chairman noted that the cooperation between Gazprom and the Republic was especially significant in relation to the large-scale Altai project to be launched in the region. The gas pipeline construction will have a significant effect on the gas supply and gasification, the socioeconomic development and investment attractiveness of the Republic as well as on the Russian constituents that it will cross.

Construction of the Altai gas pipeline will be started only after conclusion of the gas purchase and sale contract with the Chinese party. Nevertheless, Gazprom has already started preparations for the project.

During construction Gazprom will pay great attention to the environmental impact mitigation.

Summing up the meeting results, the Gazprom Management Committee Chairman emphasized that the great efforts being taken by Gazprom in the Republic of Altai were of nation-wide significance and subsequently the region would turn into a crucial area on the Russian gas map.

Background

The Altai project envisages construction of a gas pipeline for natural gas supplies from the Western Siberian fields to China across the western part of the Russian-Chinese border. The gas pipeline route is to cross six Russian constituents: the Altai Republic, the Altai Krai, the Novosibirsk Oblast, the Tomsk Oblast, the Yamal-Nenets Autonomous Okrug and the Khanty-Mansiysk Autonomous Okrug – Yugra.

In October 2009 Gazprom and CNPC signed the Framework Agreement on basic terms and conditions for natural gas supply from Russia to China. In December 2009 Basic Major Terms of Gas Supply from Russia to China were signed.

In September 2010 Gazprom and CNPC signed the Extended Basic Terms and Conditions of Natural Gas Supply from Russia to China. The document sets the key commercial parameters of the forthcoming natural gas deliveries to the Chinese market via the “western” route: the volumes and the timeframe for export startup, the take-or-pay level, the supply buildup period, the guaranteed payment level. The document is of a legally binding nature. Under the agreements reached, the contract period will be 30 years.