Today, at Gazprom’s Headquarters, Aleksey Miller, Chairman of Gazprom’s Management Committee and Alexander Volkov, President of the Udmurt Republic, have signed the network schedule for the construction of gasification facilities in the region.

According to the document, complex of works will be accomplished in the Udmurt Republic to prepare consumers for gas supply after Gazprom’s large-scale pipeline construction as stipulated by the gasification program for RF regions over 2005 to 2007.

“Gazprom proposes to construct 9 pipelines between settlements in the Udmurt Republic. According to the schedule signed, rural area gasification is our joint work priority in the Republic. Timely consumers’ preparation to get gas is the most important issue. This work should be organized locally.

Today we have also taken the principal decision to construct advanced sporting complex in Udmurtia”, declared Aleksey Miller.

“Rural area population constitutes 30 per cent in Udmurtia. Hence, we attach special significance to Gazprom’s gasification program. Its implementation will give additional impetus to the Republic’s social and economic development, especially in rural area. We are ready to fulfill our obligations to synchronize commissioning of the gasification facilities”, said Alexander Volkov.

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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.

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 level of gasification 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 already help boost gas supply to Russian regions to 60 per cent average by 2008 including 66 per cent in cities & towns and 42 per cent in rural area.

To achieve the 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 determined 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.

A 5-year agreement between Gazprom and the Government of the Udmurt Republic was signed on September 19, 2005.

The Udmurtia residential sector is currently gasified by 50 per cent including 71 per cent in cities, towns and population centers and 21 per cent in rural area. In 2006 Gazprom plans to construct at its own expense 9 gas pipelines between settlements having total extension of 322 km to be commissioned in 2007.

In 2005 Gazprom provided the Republic with more than 2.8 bcm of gas and this year Gazprom plans to provide approximately the same volume of gas.