Gazprom Management Commettee meeting was held today

Gazprom Management Committee meeting was held today. The Committee reviewed the issue of “The 2002 sales plan implementation, accrued reserves and theses reserves’ sales in natural gas markets (foreign countries, CIS and Russia) in 2003”.

The Committee reviewed 2002 sales figures. It was noted at the meeting that Gazprom and its affiliates facilitated sustainable gas supplies throughout Russia, supplying 283.4 billion cubic meters of natural gas, exceeding contracted volumes by 5.2 billion cubic meters. 97.3% of total amount due for these natural gas volumes was paid for. 22% of past due payments were also paid.

92% of domestic natural gas consumption was supplied by Gazprom, and 8% was supplied by independent suppliers through the gas transmission system.

Gazprom natural gas supplies to CIS and Baltic countries amounted to 42.4 billion cubic meters. More than 28 billion cubic meters were accounted for as Europe bound transit services charge.

Compared to 2001, natural gas sales in foreign markets increased by 2.4 billion cubic meters, and amounted to 129.4 billion cubic meters.

It was emphasized at the Committee meeting that according to 2003 Russia natural gas balance, transmission plans and finalized supply contracts, the total gas volume is fully allocated. At the same time, a necessity of requesting the Russian Federation Government to introduce differential natural gas price structure in autumn/winter and spring/summer in order to ease seasonal peak usage difficulties and natural gas underground storage facilities’ importance in this respect. Resulting additional profits will be used in developing underground natural gas storage in Russia.

The Committee made a decision to work out measures facilitating unconditional natural gas export plans implementation for 2003 (export sales volumes at 134 billion cubic meters, hard currency proceeds at US$13.5 billion), and to expand natural gas spot market sales. An analysis of natural gas underground storage facilities in Russia, and Underground Storage Facilities Reconstruction Program implementation aimed at daily 550 million cubic meters of gas withdrawal, shall be prepared by April 1, 2003. Also, a decision was made to speed up the formulation of the Underground Storage Facilities Reconstruction Program implementation aimed at daily 700 million cubic meters of gas withdrawal. The purpose of the program is to minimize unallocated natural gas at underground storages at a season’s end. Moreover, an analysis of underground storage facilities utilization in terms of export supplies efficiency improvement in Germany, Ukraine and Latvia will be performed. It was decided to continue efforts in obtaining the Russian Government approval of the “Gas sales at market prices arrangement” draft resolution with the federal ministries and branches of the government.

Information Directorate, OAO Gazprom