Gazprom and Krasnodar Krai Administration sign Cooperation Agreement for South Stream project implementation period


The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Alexander Tkachev, Governor of the Krasnodar Krai.

The parties addressed the prospects for joint work within the Cooperation Agreement. Special emphasis was placed on the regional gasification issues particularly on the prospects for inclusion of the Tuapse District settlements into the Russian Regions Gasification Program.

In addition, Alexey Miller and Alexander Tkachev discussed Gazprom's investment projects implementation in the Krasnodar Krai.

The Cooperation Agreement for the period of the South Stream construction project implementation in 2010–2014 was inked between Gazprom and the Krasnodar Krai Administration during the meeting.

Alexander Tkachev and Alexey Miller
Alexander Tkachev and Alexey Miller

Alexander Tkachev and Alexey Miller

The document prioritizes preparation and construction of the facilities required to feed the South Stream pipeline with gas.

A unique compressor station is to be built in the Krai as part of the South Stream project. The station will pump gas 900 kilometers away from the shore via the deep-water pipeline.

The Krasnodar Krai Administration will render assistance to Gazprom in obtaining permits, required expert reviews, and approvals from regional executive authorities at each stage of the gas transmission facilities construction.

Under the Agreement, Gazprom will consider the possibility to provide additional natural gas supplies to Krasnodar and south-western regions of the Krai (Anapa, Novorossiysk, Gelendzhik, the Abinsk, Krymsk and Temryuk Districts) through reconstruction and construction of new Unified Gas Supply System facilities in the Krai.


Gazprom and the Krasnodar Krai Administration signed the Cooperation Agreement in February 2004.

Between 2002 and 2009 Gazprom invested some RUB 5 billion in the Krasnodar Krai gasification. The gas penetration level in the Krasnodar Krai grew by 14.5 per cent over this period up to 77.5 per cent including 83.9 per cent in cities and towns and 69.5 per cent in the rural area. The identical figures throughout Russia average 63.2, 67.5 and 45.5 per cent respectively.

In 2010 Gazprom invested over RUB 3 billion in the Krasnodar Krai Olympic venues gasification.

In compliance with the Program for the Olympic facilities construction and development of Sochi as a mountain-climatic resort, Gazprom is responsible for constructing a number of Olympic venues in the Krasnodar Krai, namely: the combined ski and biathlon complex accommodating 16 thousand people, the mountain tourist center, the Dzhubga – Lazarevskoye – Sochi gas pipeline and the Adler TPP.

The South Stream project is implemented with a view to diversify the routes of natural gas supply to European consumers and envisages construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe.

Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the project's onshore section beyond Russia.

At present, the South Stream Consolidated Feasibility Study is being elaborated including the studies for the offshore section and for the respective gas pipelines in host countries of Southern and Central Europe.


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