Gazprom and Leningrad Oblast sign Agreement of Cooperation for 2010
Today in Saint Petersburg Alexey Miller, Chairman of the Gazprom Management Committee and Valery Serdyukov, Governor of the Leningrad Oblast signed an Agreement of Cooperation between Gazprom and the Leningrad Oblast Government for 2010.
The document defines development of the Leningrad Oblast gas supply system and execution of the Gryazovets – Vyborg gas pipeline project in the region as the major cooperation areas.
Alexey Miller, Chairman of the Gazprom Management Committee (second from left) and Valery Golubev, Deputy Chairman of the Gazprom Management Committee (first from left)
Gazprom and the Leningrad Oblast Government will continue implementing target programs on building the new and upgrading the existing heat supply systems.
The parties will continue the joint efforts on wider utilization of natural gas as a motor fuel.
The Leningrad Oblast Government will ensure full payment for the current gas supplies to budget consumers, new consumers’ readiness to receive gas in line with the synchronization schedule for the 2010 Gasification Program, as well as gas metering equipment installation.
Valery Serdyukov and Alexey Miller speaking with media representatives
The Government will elaborate and approve the schedule for switching to backup fuel for the regional organizations during cold spells and its implementation order.
The Leningrad Oblast Government will provide the organizations, which take part in gasification programs and heat supply facilities construction, with the tax and other benefits foreseen by the legislation in force. Gazprom and its subsidiary companies will be given assistance in the land allotment issues.
Gazprom, on its part, will secure uninterrupted gas supply to the Leningrad Oblast consumers. The 2010 Gasification Program for the Russian Federation Regions has provided for the financial resources to complete the construction of gasification facilities in the Leningrad Oblast. Gazprom will also earmark funds to accomplish design and exploration activities for gas laterals to a number of population centers including the towns of Primorsk and Priozersk.
The Company will allocate the necessary funds to implement thermal energy investment projects in the Leningrad Oblast.
Gazprom will participate in investment projects and programs provided that investments pay off and rates of return meet the corporate standards.
Gazprom and the Leningrad Oblast Government signed the five-year Agreement of Cooperation in April 2003 with the Supplement extending its duration for an indefinite period signed in February 2008.
Compared to the previous year, the average gasification level of the Leningrad Oblast has increased to 56.6 per cent including 71.1 per cent in cities and towns and 30.7 per cent in the rural area. The identical figures throughout Russia account for 63.2, 67.5 and 45.5 per cent respectively.
During 2002–2009 Gazprom committed over RUB 2.9 billion for the gasification of the Leningrad Oblast with another RUB 80 million slated for this years as part of the Gasification Program.
Between 2008 and 2009 Gazprom invested RUB 1.3 billion in thermal energy facilities construction in the Leningrad Oblast. These means were used to build gas boilers and utility systems in the town of Luga, Luga District, the settlement of Michurinskoye, Priozersky District and the settlement of Nikolsky, Podporozhsky District. In 2010 construction of gas-powered boilers in the Oblast will be continued. Gazprom will commit another RUB 1 billion to achieve this objective.
The Gryazovets – Vyborg gas trunkline (length – 900 kilometers, annual design capacity – 55 billion cubic meters) is intended for securing gas deliveries from the Unified Gas Supply System to the Nord Stream gas pipeline and supplying consumers of Russia's Northwestern region. The gas pipeline will cross the Vologda and Leningrad Oblasts. By now, over 600 kilometers of the pipeline have been built. The linear part is to be completed by late 2010.
Construction of the Gryazovets – Vyborg gas pipeline is synchronized with the activities performed as part of the Nord Stream project and according to the approved schedule. The pipeline will be put onstream in a stagewise manner starting from 2011. The design capacity is to be achieved by late 2012.
The Nord Stream is a fundamentally new route of Russian gas export to Europe. The 1,200-kilometer-long gas pipeline will cross the Baltic Sea from the Portovaya Bay (near Vyborg) to the German coast (near Greifswald).