Gazprom and Altai Area enter into Cooperation and Gas Supply Expantion Agreements
Conference before signing of a 5-year Cooperation Agreement and a Gas Supply Expansion Agreement between Gazprom and the Administration of the Altai Area
Mikhail Yevdokimov, Head of the Administration of the Altai Area and Alexey Miller, Gazprom’s Management Committee Chairman
Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Mikhail Yevdokimov, Head of the Administration of the Altai Area entered into a 5-year Cooperation Agreement and a Gas Supply Expansion Agreement.
Alexey Miller emphasized at the meeting that since the Altai Area was among the RF regions with the most poorly developed gas supply infrastructure, Gazprom and the Altai Area’s authorities were striving to intensify gas consumption in the region by, at least, 10%.
The Cooperation Agreement stipulates collaboration between the parties in the following main directions:
- expanding gas deliveries to cities, towns and municipalities of the Altai Area;
- developing and improving the system of sustainable gas supplies to consumers;
- developing capacities to use liquefied and compressed natural gas as a motor fuel;
- devising and implementing a program on gas consumption measurement accuracy enhancement at commercial gas measurement stations and metrological maintenance;
- developing a comprehensive automated gas consumption and quality measurement system based on the existing gas measurement units applied by gas transmission, distribution, industrial and utility businesses.
The parties will jointly step up measures to improve the energy resources balance of the Altai Area as well as will develop an energy conservation program of the region.
Under the Agreement, the Altai Area’s authorities will channel timely and full payments for current gas deliveries effected to state-financed bodies and will assist Gazprom and its subsidiaries in receiving timely gas payments from local consumers paying for gas deliveries out of self-run budgets.
Gazprom, in its turn, will ensure reliable natural gas supplies to consumers of the Altai Area.
Gazprom and the Altai Area’s authorities will review the implementation of the Cooperation Agreement on an annual basis.
The Gas Supply Expansion Agreement concluded between Gazprom and the Altai Area to promote the Cooperation Agreement prescribes joint involvement of the parties in intensifying gas consumption in the region.
Under the Agreement, the parties will develop:
- an investment project on expansion of gas deliveries in the Altai Area, including a feasibility study and a general scheme of gas supplies;
- a regional energy conservation program;
- a program on filling motor vehicles with compressed and liquefied natural gas.
While Promgaz will serve as a general developer of the investment project and said programs, the Altai Area’s authorities will finance the paperwork process.
The Altai Area and Gazprom first entered into a Cooperation Agreement in 1998. A gas supply expansion agreement was concluded for the first time.
In 2000, the parties signed an Agreement on construction and commissioning of the Barnaul-Biysk-Gorny-Altaisk gas pipeline and a gas branch to the resort of Belokurikha. Over this period, the parties constructed and brought into operation 43 km of the gas main and 9.5 km of the gas branch to the village of Kosikha with a gas distribution station.
Last year, Gazprom provided the Altai Area with 567.4 million cubic meters of natural gas and 601.3 million cubic meters are targeted for 2004.
As of 1 July 2004, the Altai Area’s consumers’ debt and payments for the natural gas received accounted for RUR 21.96 million and 94.2%, respectively.
The gas supply network of the Altai Area is developed at 4.1% of maximum gas demand, which is substantially less than the Russian average of 52.7%.
Information Directorate, OAO Gazprom