Gazprom and Kirov Region sign Cooperation Agreement

Nikolai Shaklein, Governor – Chairman of the Government of the Kirov Region and Alexey Miller, Gazprom’s Management Committee Chairman

Nikolai Shaklein, Governor – Chairman of the Government of the Kirov Region and Alexey Miller, Gazprom’s Management Committee Chairman

Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Nikolai Shaklein, Governor – Chairman of the Government of the Kirov Region, signed a 5-year Cooperation Agreement.

The parties emphasized that since the Kirov Region was still among the RF regions with the most poorly developed gas supply infrastructure, this issue needed to be specially addressed by Gazprom and the Regional Government.

Under the Agreement signed today, Gazprom and the Kirov Region’s joint major businesses will be as follows:

  • expanding gas deliveries to municipalities;
  • developing capacities to use liquefied and compressed gas a as motor fuel;
  • processing oil and gas condensate feedstock;
  • developing and introducing gas saving technologies;
  • developing and improving a system of sustainable gas deliveries to end-use consumers; constructing and upgrading gas distribution stations and gas trunk lines;
  • installing advanced commercial gas measurement units at gas distribution stations and developing a comprehensive automated gas consumption and quality measurement system;
  • implementing housing programs intended for Gazprom’s current and retired employees being re-settled from the Extreme North.

Under the Agreement, the Kirov Region’s Government took the commitment to make full payments for current and previous gas deliveries effected to state-financed bodies and to thoroughly offset Gazprom’s losses arisen in granting natural gas subsidies to eligible consumer categories. In addition, the Regional authorities will assist Gazprom in receiving timely gas payments from local consumers paying for gas deliveries out of self-run budgets.

The Regional Government will also contribute to identifying local gas consumption norms as well as to timely setting economically substantiated gas supply and sales charges, regulated retail gas prices, gas transmission tariffs and special additions to the tariffs imposed by gas distribution companies with the view of financing gas supply development programs.

At the same time, the Government of the Kirov Region assumed the responsibility to take Gazprom-owned social, cultural and residential facilities under the municipal ownership.

Gazprom, in its turn, took up the commitment to provide secure gas deliveries to Regional consumers, taking into consideration the United Gas Transmission System capacities , solvent consumers' gas demand and payment discipline.

The parties agreed to jointly step up measures aimed at improving the energy balance in the Kirov Region, i.e. rationalizing and using alternative energy sources on a larger scale.

A. Miller and N. Shaklein deliberated on potential cooperation within the Program on gas supply network development in the Kirov Region up to 2010.


Gazprom and the Kirov Region first signed a 5-year Cooperation Agreement in April 1999.

Last year, Gazprom delivered over 2.6 bcm of gas to the Kirov Region, which is 105.4% against the target.

In 2004, gas supplies to the Region are paid for at 98%.

Over the past 2 and a half years, Regional consumers' gas debt decreased from RUR 98.2 million (as of 1 January 2002) RUR 42.51 million (as of 1 June 2004).

The gas supply infrastructure of the Kirov Region is developed at 25.8% (against a Russia-averaged parameter of 52%), including 35.6% (60.2%), in towns and cities and 3.8% (33.1%), in rural area.

In 2003, Gazprom invested RUR 370 million in expanding gas deliveries to the Kirov Region (including RUR 330 million to construct the Yar-Omutninsk gas branch) and over RUR 500 million are planned to be channeled for these purposes in 2004 (including RUR 455.3 million to lay the 1st line of the Yar-Omutninsk-Rudnichy gas branch).

Information Directorate, OAO Gazprom

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