Gazprom and Udmurtia Republic ink Cooperation Agreement
Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Alexander Volkov, President of the Udmurtia Republic have inked a five-year Cooperation Agreement.
The meeting pointed to mutual satisfaction with the progress in cooperation between Gazprom and Udmurtia, including in regard to the amount of gas supply to the region, current gas payments and gas debt settlement, with further gas deliveries to rural area being a priority.
In pursuance of the Agreement, the parties will continue cooperation in the directions listed below:
- expanding gas deliveries to localities;
- developing and improving sustainable gas deliveries to consumers;
- founding an integrated gas distribution company;
- developing capacities spurring wider use of gas motor fuel;
- developing and introducing gas saving technologies;
- ensuring environmental safety and rational nature management;
- developing and introducing a program to enhance the gas consumption measurement accuracy;
- implementing a housing construction program for the Gazprom Group’s current and retired employees being re-settled from the Extreme North.
The Agreement fixes the Udmurt Government’s commitment to provide timely and full payments for gas deliveries to budget-sponsored consumers, establish retail gas prices that would ensure returns on economically underpinned expenses on gas acquisition, distribution and marketing as well as to contribute to timely setting economically reasonable remuneration for supply and sales services. The Republican authorities will assist Gazprom in obtaining and registering land, transferring title to welfare facilities to municipalities as well as in advising the State Council of the Udmurt Republic to provide tax benefits to the companies involved in regional purpose-oriented and investment programs. Additionally, the authorities will step up a range of measures aimed at building up industrial fuel reserves to be used in case of sharp cold spells.
On its part, Gazprom will provide uninterrupted gas supplies to Republican consumers.
The Agreement also stipulates that joint investment projects in Udmurtia will be implemented based on investment viability reports to be provided by Gazprom.
Gazprom and the Udmurt Republic first entered into a Cooperation Agreement in March 2000.
The natural gas infrastructure of the Udmurt Republic is currently developed by 55 percent of maximum gas demand, including by 70.2 percent, in cities, towns and localities, and 20 percent, in rural area. The same Russia-averaged parameters account for 53, 60 and 34 percent, respectively.
In accordance with its 2004 Gas Supply Program, Gazprom furnished the Udmurt Republic with some RUR 63 mln.
Ten gas mains and 37 laterals having 2,656 km in total length are currently running through Udmurtia. Gazprom is completing the construction of the 640 mln cu m Karashur UGS facility slated for commissioning September 2.
In 2004, Gazprom provided Republican customers with some 2.9 bcm of gas and roughly the same amount is scheduled for this year.
As of 1 August 2005, the Udmurt Republic’s gas debt accounted for RUR 104 mln, with current gas deliveries paid up at 99.8 percent.
Information Directorate, OAO Gazprom