Today, at Gazprom’s Headquarters, Alexey Miller, Chairman of Gazprom’s Management Committee and Alexander Chernogorov, Governor of the Stavropol Territory have signed an Agreement on Cooperation and a synchronized construction schedule for gasification facilities in the Stavropol Territory.

The schedule identifies a set of activities to be stepped up in the Stavropol Territory with view of preparing consumers for gas supply by Gazprom pipelines currently under large-scale construction as stipulated by the Gasification Program for RF Regions over 2005 to 2007.

“The gasification rate of the Stavropol Territory is high, in rural area inclusive. I am positive nevertheless that the regional authorities should continue paying maximum attention to gasification issues. This year Gazprom is resolute to build in the Territory five local gas pipelines. It is indispensable that industrial and household consumers receive gas immediately after Gazprom completes its part of the work,” emphasized Alexey Miller.

On his part, Alexander Chernogorov noted that under the schedule inked the Government of the Stavropol Territory was committed to constructing between 2006 and 2007 more than 46 km of local gas pipelines, converting to gas 33 boiler plants and gasify 1,120 households, with over RUR 140 mln to be spent for these purposes.

Reference:

The Agreement on Cooperation between Gazprom and the Government of the Stavropol Territory was signed due to the expiry of the previous Agreement sealed in January 2001. The newly signed Agreement stipulates promoting the following major joint businesses:

• Gasification of the Stavropol Territory;
• Creating a comprehensive automated system for natural gas consumption and quality measurement;
• Developing and introducing gas saving technologies;
• Conducting geological exploration, organizing gas and other hydrocarbon production;
• Ensuring environmental safety & security and rational nature management.

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

These schedules are part of 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 boiler plants in villages & settlements and more than 500 agricultural companies, with 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.

Natural gas penetration in the Stavropol Territory is currently at 89 per cent including 91 per cent in cities, towns & population centers and 87 per cent in rural area.

Over 2005 Gazprom provided the Territory with over 10 bcm of gas and roughly the same amount is scheduled for this year.