Alexey Miller and Nikolay Merkushin have signed an agreement on gas supply to the Republic of Mordovia Development
Message to the Media
Alexey Miller, The Chairman of the Management Committee of Gazprom and the Head of Mordovia Republic Mr. Nikolay Merkushin have signed an Agreement on Gas Supply to the Republic of Mordovia development in Saransk, the capital city of the Republic.
According to the Agreement, the parties will undertake a comprehensive investment project on gas supply to the Republic development; a stage-by-stage program of the gas supply development will result in the project to be finalized and financial sources will be determined. The investment project will also include a package of gas saving measures in the field of gas consumption and distribution, modernization of a number of gas supply facilities, arrangement of monitoring, diagnostic, control and gas flow metering systems.
The document assumes restructuring of the indebtedness of enterprises and organizations of the Republic, which accumulated by 1.01.2002. It is believed that the debts will be restructured in three years period. The assets obtained through debt repayment, the tax component excluded, should be invested in gas supply development projects in the Republic of Mordovia. Regional energy- and gas saving program will be implemented in the Republic. The “blue fuel” saved will be used for gas supply purposes.
The government of Mordovia will allocate the volumes of natural gas to be delivered to consumers through newly built pipeline grids strictly in coordination with Gazprom.
Under the terms of the Agreement, gas supply facilities commissioned during realization of the program on the account of Gazprom will be considered Gazprom’s property.
The government of Mordovia will ensure a hundred per cent monetary payment for natural gas delivered to the budget organizations. The budget of the Republic will contain a special, fixed item for the purpose.
“Signing of the Agreement is a new step in the development of relations between Gazprom and Republic of Mordovia. Perfect result was achieved in the course of our cooperation: the level of gas supply development in the Republic reached 95% – one of the highest in the Russian Federation. The Republic of Mordovia posses huge economic potential, and we don’t have any reasons to be anxious about the future”, declared Alexey Miller, the Chairman of the Management Committee of Gazprom.
Background
For a number of years the Republic of Mordovia has been successfully implementing the program of gas supply development in cooperation with Gazprom, leaving behind most of the RF regions in that respect. The Government of the Republic issued a Decree № 243, dated 28.04.1999, which approves the program of gas supply and gas transmission system development for the years of 1999 – 2000. Cooperation between the Government of the Republic of Mordovia and Gazprom resulted in the increase of the level of gas supply development up to 95% while an average level in Russia amounts merely to 52%. Over 5 900 km of gas pipeline grids were commissioned in Mordovia since 1996. The Republic is building up the volume of production by 10 – 15% annually, which stipulates acceleration of the gas supply development rate.
Information Directorate, OAO Gazprom