Alexey Miller, Chairman of the Gazprom Management Committee and Vladimir Yakushev, Governor of the Tyumen Oblast signed a Cooperation Agreement between Gazprom and the Tyumen Oblast Government at the Company’s headquarters today.

The document envisages the following major areas for cooperation between the parties in the Region:

- ensuring that gas is uninterruptedly supplied to and fully paid for by consumers;

- gasifying population centers;

- elaborating and executing a program for the use of gas as a transport fuel;

- developing and introducing gas-saving technologies;

- providing environmental safety and rational nature management.

In accordance with the document the Tyumen Oblast Government will provide timely and complete payment for current gas supplies to state-funded organizations. Gazprom will be rendered assistance in land allocation in order to perform geological exploration, maintenance and repair work required for gas supply facilities.

The Tyumen Oblast Government will contribute to promoting the investment and innovation projects related to gas supply, gasification, energy saving and environmental mitigation in the Tyumen Oblast. Assistance will also be rendered in providing such project operators with tax incentives through adoption of the respective legal acts by the Tyumen Oblast legislative authorities.

On its part, Gazprom will supply natural and liquefied petroleum gas in the agreed amount to the Tyumen Oblast consumers. The Company will take the necessary measures to make maximum possible use of the associated petroleum gas at its gas processing facilities.

Gazprom will study the proposals by the Tyumen Oblast Government to participate in the Urals Industrial – Urals Polar program and will consider the possibility of participating in social and economic programs implementation and of financing social facilities construction.

The Agreement was signed for an indefinite period of time.

Background:

The average level of natural gas penetration in the Tyumen Oblast amounts to 30.3 per cent including 25.2 per cent in cities and towns, 39.9 per cent in the rural area. The identical figures throughout Russia average 63.2, 67.5, and 45.5 per cent respectively.

In 2003–2008 Gazprom invested RUB 976.2 million in the Tyumen Oblast gasification. In 2009 the Company allocated RUB 160 million to initiate the construction of three inter-settlement gas pipelines with the total length of 18.7 kilometers in Tyumen and the Yarkovsky District. On its part, the Tyumen Oblast Government sponsored construction of seven gas distribution pipelines with the total length of 19.4 kilometers, prepared 520 households for gas supply and converted three boiler houses to gas.

In 2010 Gazprom is planning to invest RUB 218 million in the Tyumen Oblast gasification to accomplish construction of the facilities. The Tyumen Oblast Government will allocate funds for construction of two gas distribution pipelines with the total length of 14.6 kilometers and prepare more than 200 households for gas supply.