Today at the Gazprom headquarters Alexey Miller, Chairman of the Company’s Management Committee and Sergey Vakhrukov, Governor of the Yaroslavl Oblast signed a Partnership Agreement between Gazprom and the Yaroslavl Oblast Government for 2010–2014.

The document confirms the necessity to continue the comprehensive development of the Yaroslavl Oblast with due regard for implementing the projects for the Pochinki – Gryazovets gas trunkline and the Bovanenkovo – Ukhta gas trunkline system construction in the region.

Gazprom and the Yaroslavl Oblast Government will partner in the regional gasification according to the annually approved schedules, as well as to the programs for promoting the use of natural gas as a transportation fuel.

The parties will further make the efforts aimed at increasing natural gas consumption efficiency, both at industrial and utility companies in the Oblast.

Gazprom will supply gas to the Yaroslavl Oblast consumers in the agreed volume.

As part of the gasification schedules execution, the Company will construct inter-settlement gas pipelines. The priority will be given to the possible engineering and construction of such gas pipelines as the pipeline to the left-bank sector of the Tutaev town across the Volga River; the Rybinsk town – the Glebovo settlement with a gas lateral to the Tikhmenevo settlement; the Kubrinsk settlement – the Nagorye settlement – the Solba settlement (Pereslavsky District).

The Company will consider exploiting the potential of industrial construction and shipbuilding companies located in the Yaroslavl Oblast when implementing investment projects.

Alexey Miller and Sergey Vakhrukov addressed the implementation of the Agreement of Cooperation between Gazprom and the Yaroslavl Oblast Government, placing an emphasis on the regional gasification issues. Particular attention was paid to the construction of the Ananyino gas distribution station (GDS). It was noted that in 2010 Gazprom would allocate RUB 271 million for the GDS construction scheduled for completion in the same year.

Background:

The Agreement of Cooperation between Gazprom and the Yaroslavl Oblast Government was signed in February 2005 for an indefinite period, the Accord on Gasification – in December 2003.

The average gasification level in the Yaroslavl Oblast amounts to 70.1 per cent, including 86.9 per cent in cities and towns and 20.2 per cent in the rural area. The identical figures throughout Russia average 63.2, 67.5 and 45.5 per cent respectively.

In 2009 Gazprom allocated about RUB 343 million to construct four inter-settlement gas pipelines with the total length of 86.7 kilometers, as well as to carry out design and exploration work for the construction of three more inter-settlement gas pipelines in the Yaroslavl Oblast. On its part, the Oblast Government sponsored the construction of 31.6 kilometers of street networks, reconstruction of three boiler houses and preparation of 1,470 households for gas supply.

In 2010 Gazprom is going to invest RUB 250 million in the Oblast gasification.