Meeting on Republic of Daghestan gasification held

RELEASE

Makhachkala hosted today a joint meeting on the Republic of Daghestan gasification. The meeting was co-chaired by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Mukhu Aliev, President of the Republic of Daghestan.

Present at the meeting were Bogdan Budzulyak and Yaroslav Golko, Members of the Gazprom Management Committee; Shamil Zainalov, Prime Minister of the Republic of Daghestan; heads of Gazprom core business units and subsidiaries – Mezhregiongaz, Promgaz, Gazprom transgaz Makhachkala, Gazpromstroyengineering and representatives of the Daghestani Administration.

The meetings pointed out that despite a relatively high average level of gasification in the Republic of Daghestan, a variety of regional areas remained undersupplied. This primarily refers to mountainous rural areas of the Republic.

The meeting resulted in the signing of the Minutes covering the agreed paramount activities on gasification completion in Daghestan, including preparation of consumers for gas deliveries. Pursuant to the Minutes, Gazprom prioritizes gasification of the Tsumada and Botlikh districts. The Company will also provide the construction of inter-settlement pipelines in the following mountainous areas of Daghestan: Gumbet, Hunzakh and Kazbek. On its part, the Daghestani Administration is committed to constructing inter-settlement pipelines in conformity with the Program for synchronized gasification activities.

“In its gasification programs Gazprom pays special attention to the rural area. Not only does gasification dramatically change the lives of rural inhabitants, but also gives a strong impetus to agricultural enterprises, considerably improves investment climate in agricultural areas,” underlined Alexander Ananenkov at the meeting.

Reference

The five-year Agreement of Cooperation between the Republic of Daghestan and Gazprom was signed in September 2003, the Gasification Accord – in 2005.

In 2007 Gazprom supplied Daghestani consumers with circa 2.5 bcm of gas.

The level of Daghestan’s gasification accounts for 96.2 per cent including 98 per cent in cities, towns and settlements and 27.9 per cent in rural areas (the identical rates throughout Russia average 62, 67 and 44 per cent respectively).

In 2007 Gazprom invested RUR 80 mln to gasify the Republic of Daghestan. The funds were used to build four inter-settlement pipelines, with one of those completed in the same year. In addition, the year 2007 saw the development of the General Gasification Scheme for the Republic of Daghestan.

In 2008 Gazprom will allocate additional RUR 80 mln to gasify the Republic. In January of this year two inter-settlement pipelines were commissioned ahead of schedule.

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