Board of Directors addresses Gazprom's gas supply strategy for Russian regions
Message to the Media
The Board of Directors’ meeting has adjourned at Gazprom’s Headquarters.
The Board heard a report on Gazprom’s gas supply strategy for the Russian Federation regions, approving the Company’s activities in said sector over 2005 and ordering to keep up the same pace in 2006 and 2007.
The Board tasked the Management Committee with earmarking in the Program on gas supply to the RF constituents at least RUR 17.6 bln for 2006 and RUR 12.2 bln for 2007.
Background
The present-day Russia-averaged level of natural gas supply accounts for 53 per cent including 60 per cent in cities & towns and 34 per cent in rural area.
Between 2005 and 2007 Gazprom plans to commit RUR 35 bln for constructing gas infrastructure and supplying gas throughout the Russian Federation, with including RUR 5.2 bln already channeled for these purposes in 2005 (together with the funds used to complete construction projects launched in 2003 and 2004, the total sum now exceeds RUR 7 bln).
Implementing the Program on gas deliveries over 2005 to 2007 will help boost gas supply to Russian regions to a 60 per cent average by 2008 already.
To achieve said target, Gazprom will deliver gas to a further 3,851 thousand apartments & households including 2,673 thousand in cities & towns and 1,178 thousand in rural area.
The Program will enable Gazprom to channel natural gas to some 20 thousand new household institutions (hospitals, kindergartens, schools, etc.), over 5,000 heating boilers in villages & settlements and more than 500 agricultural companies, with a total of 11 mln people to be serviced.
Gazprom’s investment priorities for regional gas supply will be determined based on the following criteria: full payments for gas deliveries; repayment of gas debt; economic viability of projected gas infrastructure; customers’ readiness to receive gas; actual loading of gas laterals and distribution stations; assistance in promoting the use of compressed and liquefied natural gas as motor fuel.
Information Directorate, OAO Gazprom