Gazprom and Yamal-Nenets Autonomous Okrug Sign Cooperation Agreement for 2008
Today, at the Gazprom Headquarters, Alexey Miller, Chairman of the Company’s Management Committee and Yury Neyolov, Governor of the Yamal-Nenets Autonomous Okrug (YaNAO) signed a Cooperation Agreement for 2008.
The Agreement sets out mutual commitments in the tax, pricing and social policy, energy saving and environmental areas, as well as land property relations, capital construction and transport sectors.
Pursuant to the Agreement, the parties will take mutual efforts to promote investment, sci-tech and innovative activities, as well as to implement high-performance joint projects in YaNAO.
The parties will proceed in performing their obligations in accordance with the terms and conditions of the Memorandum of Cooperation entered into by the YaNAO Administration and Gazprom on January 29, 2002 and providing for the integrated commercial development of both onshore and offshore hydrocarbon fields of the Yamal Peninsula.
In the gas supply and energy saving sector the priority will be given to joint regional programs embracing:
- Utilization of non-conventional renewable energy sources.
- Wider use of natural gas vehicles.
- Conversion of gas boilers to the cogeneration regime.
- Utilization of low pressure and associated petroleum gas as fuel during the construction of new power plants.
According to the Agreement, the YaNAO Administration will support the Gazprom subsidiaries operating in the region in the matters related to land allocation.
Gazprom will keep constructing the facilities within the frame of the investment project for laying a branch pipeline to the cities of Salekhard, Labytnangi and Kharp village. In addition, the Company will supply natural gas and petroleum derivatives to the regional consumers in the agreed quantities.
In 2008 the parties continue the process of transferring the ownership of the housing stock, public utility, social and cultural facilities being on the books of Gazprom subsidiaries to the municipal entities of YaNAO. Furthermore, the employees and retired pensioners of Gazprom subsidiaries residing in YaNAO will be assisted in moving to the areas of salubrious climate.
The Yamal-Nenets Autonomous Okrug (YaNAO) is the major gas production province of Gazprom, with over 90 per cent of gas (about 83 per cent of the Russian total) extracted here by the Company.
The primary document regulating the cooperation between Gazprom and YaNAO is the General Agreement. Within the scope of this Agreement the parties have signed additional agreements and accords, and the Memorandum of Cooperation, with agreements of cooperation concluded on an annual basis.
In 2007, Gazprom supplied YaNAO with over 1.5 bcm of natural gas. This year’s deliveries are planned at nearly 1.8 bcm.
The Company supplied 40600 t of diesel fuel, motor gasoline and liquefied gas to YaNAO in 2007. This year Gazprom is going to supply over 60000 t of liquid hydrocarbons to the consumers in YaNAO.
The average gasification level of the region is 66.2 per cent (the country-wide average is 62 per cent). In 2008, Gazprom will invest over RUR 140 mln to gasify YaNAO.
The regional consumers have no debts to Gazprom for the delivered gas.