The verbatim report of Mikhail Akselrod’s speech on "Implementing the Programs on Gas Deliveries to the Regions of the Russian Federation", given at the annual Meeting with the RF President and Government’s regional authorities’ representatives.
Dear participants of the Meeting!
The Russian gas supply system development was and is still a pivot of Gazprom’s regional policy and one of the core directions of cooperation between the Company and the RF regions.
Gazprom has conducted a big scope of works to develop Russia’s gas supply system: the Company constructed over 4,800 km of gas distribution pipelines over the past 4 years.
In 2000-2002 the length of pipelines annually laid by the Company grew fivefold from 300 to 1,500 km and the investment amount rose sixfold from RUR 200 million to RUR 1.2 billion. In addition, within the same period some 3,000 km of gas branches and gas distribution pipelines were laid in 15 Russian regions, over 300 localities have been supplied with gas and over 300 thousand people started using natural gas.
In 2003 the Program so far covered 34 regions: RUR 3.5 billion were allotted to develop regional gas supply systems and 1,810 km of gas grids have been built. In addition, Gazprom’s Capital Construction Plans envisaged further construction of high-pressure gas branches with the total length of 621 km, to be commissioned in 2004.
In August 2003 Gazprom’s Management Committee approved the Concept of the Company’s participation in developing the gas supply system of the RF regions. Gazprom targets here at enhancing the people’s life quality and spurring the regional economic expansion, on the one hand, and at establishing conditions ensuring normal functioning of the United Gas Transmission System and achieving high efficiency indices while implementing projects, on the other hand.
The 2004 Program on Gas Deliveries to the RF Regions is being implemented based on the mechanisms envisaged in the Concept. By regulating the investment process (meaning that Gazprom serves as investor represented by its Capital Construction and Transportation Department, Regiongazholding acts as customer and Promgaz, as designer), the Company has reaped fruits already.
Under the Program, Gazprom plans to lay over 1,500 km of gas pipelines in 38 Russian regions, worth some RUR 2,718.98 million.
The Program is implemented under the timetables clearly determining priorities and timings of the work to be done, including the entire scope of operations preceding the property registration procedure and the commitments of all the parties involved: designers – constructors – material suppliers – operating company.
The construction costs are calculated not based on the prices established in 1984 but based on new estimation standards and a resource-based method.
The 2005 Program is being drafted. So far, the Document envisages for operations in 40 Russian regions. Gazprom has forwarded formal requests to regional authorities about the list of facilities to be constructed.
In building the 2004 and 2005 Gas Supply Development Programs, the main criteria for selecting facilities to be built are:
Getting back to the economic efficiency of Gazprom’s investment activities, I’d like to emphasize that cost-saving programs should already be implemented at the stage of devising optimal regional gas supply schemes. Promgaz, Gazprom’s parent sci-tech gas center, was put in charge of this process. This company has high scientific potential and has accumulated significant experience in resolving similar issues at the top level.
The General Gas Supply Schemes serve as a pivot for implementing new investment projects comprising innovative advanced methods, modern materials, equipment and construction technologies. This helps us to reduce the construction timing and cost and enhance the security of gas transmission systems.
In selecting contracting parties to be responsible for implementing the Program, the preference is given to companies that are able to apply the above-mentioned technologies and have in stock relevant equipment and mechanisms.
Ultimately, I’d like to point out that the best results in making full-scale gas deliveries to the RF regions can only be achieved through properly coordinated actions of regional authorities and Gazprom’s relevant departments.
So that we could meet emerging challenges, we need your support and assistance. First of all, I’ am referring to prompt resolution of issues on obtaining land grants for building purposes and to rapid coordination of projects. The regional authorities’ role is also important in tackling the issue of preparing consumers to receive gas. Only by coordinating activities in constructing gas facilities and preparing consumers to receive gas, we’ll be able to expect the high project efficiency.
And finishing my report, I’d like to wish all of you success in meeting such a crucial challenge as gas deliveries to the RF regions. And let me express my certitude that our cooperation will develop and deepen.
Thank you for your attention!