The Gazprom Headquarters today hosted a working meeting between Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Yakov Ishutin, Deputy Head of the Altai Krai Administration.

The parties discussed the progress with the Cooperation Agreement between Gazprom and the Altai Krai Administration, particularly issues related to gasification of the region including its southwestern areas. The meeting also addressed the preparation of the Altai Project for execution.

Special attention was paid to the need for the regional Administration to execute the synchronized construction schedule for gasification facilities in the Altai Krai.

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In 2004 Gazprom and the Altai Krai Administration signed a five-year Cooperation Agreement and a Gasification Accord. In April 2006 the parties signed a synchronized construction schedule for gasification facilities in the Altai Krai.

Natural gas penetration in the residential sector of the Altai Krai is at 5.1 per cent including 7.9 per cent in cities & towns and 1.6 per cent in rural areas. The same average figures throughout Russia make up 58, 64 and 40 per cent respectively.

In 2006 Gazprom supplied regional consumers with nearly 650 mcm of gas. This year deliveries are planned at nearly 730 mcm.

The Altai Krai consumers have no debt to Gazprom for the delivered gas. As of January 1, 2008, advance payments amount to RUR 126 mln.

In October 2007 Gazprom put into operation a branch pipeline to the town of Belokurikha, which is an integral part of the Barnaul-Biysk-Gorno-Altaisk gas main with the lateral to Belokurikha. The branch pipeline construction enables to gasify in addition to Belokurikha a further six settlements. The Barnaul-Biysk-Gorno-Altaisk gas main with the branch pipeline to Belokurikha is planned to see the construction of 13 branch pipelines, which will enable to gasify 117 thousand apartments in 297 settlements of 14 local areas.

The Altai Project stipulates Russian natural gas deliveries to the People’s Republic of China. The Altai pipeline will link West Siberian fields with the Xinjiang-Uyghur Autonomous Region in western China.

Executing the Altai project will enable to supply natural gas to the Russian settlements along the gas pipeline route, create new jobs and significantly replenish the regional and local budgets through appropriate tax payments.