Alexey Miller, Chairman of Gazprom’s Management Committee and Viktor Tolokonsky, Governor of the Novosibirsk Region have signed at Gazprom’s Headquarters a synchronized construction schedule for Regional gasification facilities.

Under the schedule, the Novosibirsk Region will see a set of activities aimed at preparing consumers for gas supply by Gazprom’s pipelines currently under sweeping construction as stipulated by the gasification program for RF regions over 2005 to 2007.

“The Novosibirsk Region’s gasification rate is one of the lowest in the Siberian Federal District and Russia in general. Such regions require particular attention.

This year, Gazprom is keen to construct 14 local gas pipelines in the Region. It is indispensable that the Regional authorities do their best for providing connection of consumers without delay as stipulated by the signed schedule,” noted Alexey Miller.

On his part, Viktor Tolokonsky emphasized that the Regional Government would exercise tight control over the construction of local gas pipelines and preparation of consumers for gas supply. “Under the schedule signed, between 2006 and 2007 the Novosibirsk Region plans to use some RUR 750 mln from various-level budgets to build local pipelines,” stressed the Governor.

Viktor Tolokonsky also held a working meeting with Dmitry Medvedev, RF First Deputy Prime Minister & Chairman of Gazprom’s Board of Directors. The parties discussed issues surrounding the implementation of the gasification program for RF regions over 2005 to 2007 in the Novosibirsk Region.

Reference:

The synchronized construction schedule for gasification facilities identifies an activity list and implementation dates for gas infrastructure between 2006 and 2007, and is aimed at providing gas connections to consumers immediately after pipeline construction. To connect consumers, regional authorities are to construct local and household networks, build new or convert to gas existing boiler plants, install household gas appliances, etc.

These schedules are part of Gazprom’s gasification program for RF regions over 2005 to 2007, which is funded with RUR 35 bln. Of this amount, RUR 5.2 bln was already committed in 2005 and not less than RUR 17.6 bln and RUR 12.2 bln is slated for 2006 and 2007, respectively. Extra RUR 1.1 bln will be allocated for the reconstruction and modernization of existing gas distribution pipelines.

At present the Russia-averaged gasification rate makes up 53 per cent including 60 per cent in cities & towns and 34 per cent in rural area.

Implementing the gasification program over 2005 to 2007 will help boost gas supply to Russian regions to a 60 per cent average by 2008 including 66 per cent in cities & towns and 42 per cent in rural area.

To achieve said targets, Gazprom will provide gas to 3,851 thousand apartments & households including 2,673 thousand in cities & towns and 1,178 thousand in rural area.

The Program will enable Gazprom to convert to natural gas about 20 thousand new residential facilities (hospitals, kindergartens, schools, etc.), over 5 thousand boiler plants in villages & settlements and more than 500 agricultural companies, with more than 12 thousand km of pipelines to be laid and some 11 mln citizens of 53 Russian regions to be serviced.

Gazprom’s investment priorities for regional gasification are based on the following criteria: full payments for gas deliveries; repayment of gas debts; economic viability of projected gas infrastructure; customers’ readiness to receive gas; actual loading of gas laterals and distribution stations; assistance of RF regional authorities in promoting the use of compressed and liquefied natural gas as motor fuel.

Gazprom and the Novosibirsk Region signed an Agreement on cooperation in June 2005. A General Scheme for the Novosibirsk Region’s gasification is currently developed by Promgaz.

The Novosibirsk Region is currently gasified by less than 2 per cent (2.2 per cent in cities & towns and 0.4 per cent in rural area).

Under its 2006 gasification program for RF regions, Gazprom intends to build 14 local gas pipelines in the Novosibirsk Region.

Over 2005 Gazprom has provided the Region with more than 1.3 bcm of gas.