Leaded by Alexander Ryazanov, Deputy Chairman of Gazprom’s Management Committee, Gazprom’s delegation today went on a business trip to the Pskov Region, taking part in a meeting dedicated to the implementation of a Cooperation Agreement between the Pskov Region’s authorities and Gazprom.

At the end of the meeting, the parties signed a Protocol prescribing, in particular, a General Scheme of gas deliveries to the Pskov Region being developed in 2005 by the Regional authorities and Promgaz. The Scheme will stipulate the use of alternative gas supply sources and take into account consumers’ readiness to receive gas. After agreeing on the Scheme final version, the parties will determine Gazprom’s role in the intensification of gas consumption in the Pskov Region as well as will identify key steps to be made when putting the Scheme into practice.

The participants agreed to shortly enter into a new cooperation agreement and a contract on expanded gas deliveries to the Pskov Region.

In addition, Alexander Ryazanov convened a meeting on secure wintertime operations of the Pskov Region’s gas supply infrastructure. Attending the meeting were representatives of Pskovregiongaz, Pskovoblgaz and Lentransgaz.

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Gazprom and the Pskov Region’s authorities first entered into a cooperation agreement in June 1999. When implementing the agreement, the parties managed to collect practically full payments for gas supplies and to cardinally reduce the existing gas debt of Regional consumers. Since 1 January 2000, the Pskov Region’s gas customers’ indebtedness has gone down by RUR 291 million and, as of 1 November 2004, accounted for RUR 39 million.

The Velikiye Luki – Novosokolniki and Pskov – Ostrov gas lateral lines as well as a gas branch towards the settlements of Bezhanitsy and Loknya have been built in the Pskov Region by the Regional authorities, with natural gas-driven equipment installed in 16 boilers and first gas channeled to some 12,000 apartments and private houses. Considerable funds are to be allocated for further expansion of gas deliveries to the Region over the upcoming 5 years, with some 400 km of gas distribution networks to be built, 55 boilers to be natural gas-fired and 23,000 apartments to be provided with gas.

Gazprom’s natural gas shipments to the Pskov Region average 1 bcm.

DIVISION OF RELATIONS WITH MASS MEDIA