Board of Directors resolves to set up Mezhregiongazholding
The Board of Directors’ meeting is still in progress at Gazprom’s Headquarters.
To consolidate Gazprom’s assets in the gas distribution sector, the Board of Directors resolved to set up the Mezhregiongazholding company.
Mezhregiongazholding will be jointly owned by Mezhregiongaz (99%) and Lentransgaz (1%), Gazprom’s 100% subsidiaries.
Mezhregiongazholding’s shares will be paid up by gas distribution facilities, in cash, by shares of gas distribution companies (GDCs) and other securities.
The new business is being founded within Gazprom’s 2nd phase of restructuring targeted at enhancing the efficiency of Gazprom’s business as a vertically-integrated entity and optimizing core business management structure at the subsidiaries’ level. The reforms suggest establishing independent units within the affiliates dealing with various businesses, including gas transmission via distribution networks.
Consolidating Gazprom’s gas distribution assets within a single company will ensure improvement of gas distribution system in the regions of the Russian Federation, create conditions for implementing a united tariff policy and detecting finance sources to intensify gas consumption in Russian regions. In addition, this work will ensure prerequisites for the liberalization of the domestic gas market by providing all gas producers with equal terms and conditions of access to end-use consumers as well as will secure operation of gas distribution systems, common standards and requirements apply.
Over the past years, the Gazprom Group became proprietor of an extensive number of gas distribution facilities as well as assets of GDCs due to active involvement in the expansion of gas deliveries to the RF regions and the fact that most GDCs had transferred their shares to the Group as debt settlement.
Wide geography of corporate gas distribution facilities and possession of GDC shares by various entities of the Gazprom Group of companies prevent the Gazprom from efficiently managing these assets due to the lack of an integrated coordinating center.
Incorporating a business that will consolidate Gazprom and its subsidiaries’ assets in the gas distribution sector will foster secure and uninterrupted gas supplies to consumers and ensures the following:
- creating conditions for safe operation of gas distribution networks, taking into account common standards, rules and requirements;
- implementing a common policy in technical development of gas distribution;
- establishing environment necessary to implement an integrated tariff policy;
- promoting GDC consolidation;
- identifying finance sources to expand gas deliveries in the RF regions and upgrade medium- and low-pressure networks;
- establishing prerequisites to reform the domestic gas market by providing all gas producers with equal access to end-use consumers.
Information Directorate, OAO Gazprom