A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Vyacheslav Gaizer, Head of the Republic of Komi was held today at the Company’s headquarters.

The parties considered the implementation of the Cooperation Agreement, the Gasification Accord and the Contract of cooperation for the Bovanenkovo  – Ukhta gas trunkline system (GTS) construction within the period from 2009 to 2012.

The meeting addressed the regional gasification issues and stressed the necessity to meet the obligations by the Republic’s Government relevant to preparing consumers for gas supplies. Special emphasis was placed on developing the system for gas supply to and gasification of the Republic’s northern regions in parallel with commissioning of the Bovanenkovo – Ukhta GTS facilities.

Alexey Miller and Vyacheslav Gaizer discussed the issues related to road infrastructure retrofitting in the Republic of Komi within the Bovanenkovo – Ukhta GTS construction, and the possibility of re-constructing the Vaivozh – Nizhnaya Omra gas pipeline.

Background:

The Cooperation Agreement was signed between Gazprom and the Republic of Komi in 2005, the Gasification Accord – in 2008, and the Contract of cooperation for the Bovanenkovo – Ukhta gas trunkline system (GTS) construction within the period from 2009 to 2012 – in 2008.

Natural gas penetration in the Republic of Komi is at 43.6 per cent, including 57.3 per cent in cities and towns, and 6 per cent in the rural area. The identical figures throughout Russia average 63.2, 67.5 and 45.5 per cent respectively.

In compliance with the Gasification Program for the Russian Federation regions over 2006 to 2009, Gazprom invested RUB 603 billion in the Republic of  Komi. In 2010 it is projected to allocate RUB 50 million for the regional gasification.