On meeting between Alexey Miller and Oleg Betin

RELEASE

The Gazprom Headquarters today hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Oleg Betin, Head of the Tambov Oblast Administration.

The parties discussed the prospects for gasification of the Tambov Oblast. In particular, a focus was placed on the possibility of constructing pipeline branches and continuing the work for Gazprom to buy out inter-settlement pipelines currently owned by the Oblast Administration.

Background

The Cooperation Agreement between Gazprom and the Tambov Oblast Administration was signed in April 2004, the Accord on Gasification – in April 2003.

In 2007 Gazprom supplied the Oblast consumers with approximately 1.8 bcm of gas. Roughly the same volumes are slated for the current year.

The gasification level of the Tambov Oblast makes up 59.1 per cent, with 81.8 per cent in cities, towns and settlements, and 33.4 per cent in the rural area. The identical figures throughout Russia average 62, 67 and 44 per cent respectively.

Between 2002 and 2006 Gazprom committed around RUR 472.43 mln to gasify the Tambov Oblast. In 2007 investments amounted to RUR 350 mln.

In 2008 Gazprom will invest additional RUR 350 mln in the Tambov Oblast gasification. The funds will be used for engineering and constructing eight inter-settlement pipelines with a total length of 133.2 km. The parties have so far agreed on a work synchronization schedule calling for the regional authorities to finance the construction of gas distribution pipelines with a total length of 140.7 km, switch 12 boilers to gas and gasify 3,833 households.

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