Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Oleg Betin, Governor of the Tambov Region have signed a synchronized construction schedule for Regional gasification facilities.

In accordance with the schedule, the Tambov Region will see a complex of works aimed at preparing consumers for gas supply by projected Gazprom pipelines currently under sweeping construction as stipulated by the gasification program for RF regions over 2005 to 2007.

“During 2006 Gazprom will construct 17 gas pipelines between settlements in the Tambov Region. Given the construction scope, it is important not to disappoint the people’s expectations. The Regional authorities must therefore do their best to ensure that consumers are prepared for gas deliveries as soon as Gazprom brings gas to a population centre”, said Alexey Miller.

“Under the schedule signed up to 2008, the Tambov Region’s leadership plans to commit over RUR 257 mln to construct nearly 185 km of local gas grids, to convert 26 heating plants to natural gas and gasify 6,200 households”, emphasized Oleg Betin.

Reference:

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

Network schedules are signed to implement 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 heating plants in villages & settlements and more than 500 agricultural companies, 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.

The Tambov Region is currently gasified by 55 per cent (77 per cent in cities & towns and 29 per cent in rural area).

Under its 2006 gasification program for RF regions, Gazprom plans to construct in the Tambov Region 17 gas pipelines between settlements with a total length of over 241 km.

In 2005 Gazprom provided the Region with about 2 bcm of gas.