On the meeting between Alexey Miller and Vyacheslav Pozgalev

A meeting took place in Moscow between Alexey Miller, the Chairman of the Management Committee of Gazprom, and Vyacheslav Pozgalev, the Vologda region Governor.

The parties discussed the natural gas supply to the Vologda region consumers and payment for gas delivery issues. The parties reviewed the terms and conditions of gas distributing grids transfer to Gazprom’s ownership (these grids were constructed on the oblast’s own resources). The parties exchanged views on fulfillment of the principal clauses of the Agreement on cooperation between Gazprom and the Vologda region’s community for 2003 – 2007. The parties discussed the progress in construction operations in the area within the frames of the Yamal – Europe project commitments. Construction of a 600-km long gas main section should be completed to provide gas export through the Yamal – Europe pipeline during 2002 to 2006, as well as construction of the Novo-Yubileinaya compressor station (75 MW).

A Task Force will be formed in the nearest future intended for efficient and flexible settlement of the problems related to commissioning the Yamal – Europe project section in the territory of the Region. The Task Force will be staffed with Gazprom’s top management representatives and officers from the Vologda region Administration. Special attention was focused on topics connected with the North European gas pipeline (NEG) projected in the territory of Vologda region.

The NEG route will cross the territory of Gryazovets, Vologodsky, Sheksninsky, Kaduysky and Babayevsky areas of the Vologda region. The length of the NEG section in Vologda region is 329 km. The pipeline will be made of the 1220-mm pipes. Three compressor stations with the total capacity of 224 MW will be constructed in the territory of the Vologda region.

According to the project schedule, the entire set of the pipeline route discussions and research work should be carried out in 2003; and the work on technical documentation should be started in 2004. The main volume of construction and assembly operations in the territory of the Oblast is supposed to be completed in 2005 – 2006.

Approximately 1900 workers and engineers will be involved in the pipeline construction and about 100 permanent working places will be required to ensure the pipeline operation.

The parties stressed that the NEG project realization will require precise coordination of the work of the customers, design bureaus and construction companies with the Vologda region Administration. A task force will be formed in the nearest future intended for efficient and flexible settlement of the problems related to implementation of the project.

Information Directorate, OAO Gazprom