The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Igor Slyunyaev, Governor of the Kostroma Oblast.

Special attention was given to settling the gas arrears among consumers, enhancing their payment discipline and observing the obligations undertaken by the Oblast Administration on consumer preparation for gas supply.

It was highlighted that the successful fulfillment of the mentioned tasks had a direct impact on a potential increase in the amount of the investments allocated by Gazprom for the regional gasification and construction of a gas lateral to the city of Kostroma from the Pochinki – Gryazovets gas trunkline.

Alexey Miller and Igor Slyunyaev considered the prospects for delivery of additional gas volumes to the Kostroma state district power plant. The parties pointed out the need for reconstruction of the gas lateral from the Pochinki – Gryazovets gas trunkline to build up gas deliveries. Gazprom included these operations in the 2011–2015 Comprehensive Program for Reconstruction and Re-equipment of Gas Transmission and Underground Storage Facilities.

Background

The Agreement of Cooperation between Gazprom and the Kostroma Oblast Administration was signed in October 2004, the Accord on Gasification – in November 2001.

The average gas penetration level in the Kostroma Oblast is at 52.8 per cent including 67 per cent in cities and towns and 21.7 per cent in rural area. The identical figures throughout Russia amount to 63.2, 67.5 and 45.5 per cent respectively.

Between 2002 and 2009 Gazprom invested over RUB 2 billion in the regional gasification. At the same time, the Oblast Administration failed to fulfill the assumed obligations and meet the synchronization schedules for gasification facilities construction: only 62.2 per cent (160.8 kilometers) of the street-level networks were constructed, barely 22 per cent (2,619) households were prepared for gas supplies and 29 boiler houses were converted to gas making up 57 per cent of the planned level. Therefore, from 2010 to 2011 Gazprom allocated funds (RUB 210 million) to finish the facilities construction only.

The arrears of the Kostroma Oblast consumers grew by RUB 275 million between January and February this year exceeding RUB 596 million. The bulk of arrears is formed by the utilities and the power industry while the delayed payments by the public sector consumers amounted to RUB 15 million.

Under the Gasification Program Gazprom is currently engaged in the Nikolskoye GDS – Bolshiye Zhary – Sledovo – Sudislavl inter-settlement gas pipeline construction in the Oblast. Moreover, under the 2011 Investment Program Gazprom constructs the Galich – Manturovo – Sharya gas lateral with the startup complex to be commissioned this year.