Gas Supply and Gasification Program for Yakutia until 2026 approved

RELEASE

Alexey Miller, Chairman of the Management Committee of Gazprom, and Yegor Borisov, Head of the Republic of Sakha (Yakutia), signed today at the St. Petersburg International Economic Forum 2017 a revised Agreement of Cooperation.

Yegor Borisov, Head of Republic of Sakha (Yakutia), and Alexey Miller signing at St. Petersburg International Economic Forum 2017 revised Agreement of Cooperation
Yegor Borisov, Head of Republic of Sakha (Yakutia), and Alexey Miller signing at St. Petersburg International Economic Forum 2017 revised Agreement of Cooperation

Yegor Borisov and Alexey Miller signing documents

The document had been drafted to replace the Agreement of Cooperation signed in 2007.

The revised Agreement aims to provide favorable conditions for the creation of the Yakutia gas production center and the construction of the Power of Siberia gas trunkline, as well as to ensure sustainable social and economic development of the region.

The document outlines a number of priority areas for cooperation, including support for the Company’s investment projects, expansion of the gas grid coverage in the region, and development of the NGV market.

The Agreement also covers efforts for protecting the environment, preserving natural habitats, and maintaining the traditional ways of life, economy and trades of northern indigenous minorities in the Republic of Sakha (Yakutia).

Alexey Miller and Yegor Borisov also inked the Program for Gas Supply to and Gasification of the Republic of Sakha (Yakutia) until 2026. Pursuant to the document, Gazprom plans to build in the region a number of gas distribution stations, as well as gas pipeline branches and inter-settlement gas pipelines with a total length of some 365 kilometers, connecting 29 localities in the Aldansky, Lensky, Neryungrinsky and Olyokminsky districts to gas lines.

The regional authorities will in turn facilitate the construction of intra-settlement pipelines stretching for over 396 kilometers and prepare over 6,600 apartments and households and 90 boiler houses to receive gas supplies.

The Company and the region’s total investment in the Program is estimated at RUB 13.1 billion.

Gas Supply and Gasification Program for Yakutia until 2026 approved
Gas Supply and Gasification Program for Yakutia until 2026 approved

Developing gas resources and shaping gas transmission system in Eastern Russia

Background

In addition to the Agreement of Cooperation, Gazprom and the Government of the Republic of Sakha (Yakutia) have in force the Contract for cooperation in the field of social and economic development of Yakutia during the implementation of the Eastern Gas Program, as well as the Agreement on a wider use of natural gas as a vehicle fuel.

As of January 1, 2017, Yakutia’s gas penetration level was 32.2 per cent for the region as a whole and 23.2 per cent for rural areas versus the national average of 67.2 and 57.1 per cent, respectively.