Gazprom and Leningrad Oblast sign Agreement of Cooperation for 2012
RELEASE
Release
Sergey Naryshkin, Chief of Staff of the Presidential Executive Office, Valery Serdyukov, Governor of the Leningrad Oblast and Valery Golubev, Deputy Chairman of the Gazprom Management Committee took part today in the celebrations dedicated to natural gas supplies to the Miny village in the Gatchina District, Leningrad Oblast.
The population center was supplied with gas after construction of an inter-settlement gas pipeline between the Vyritsy settlement and the Miny village. Private households are getting connected to gas networks, gasification of apartment blocks is expected in the nearest future.
“Gazprom penetrates big cities and small population centers around the country with its gas supplies. For this purpose in 2011 Gazprom invested a record amount of funds – more than RUB 29 billion. As a result, around 400 cities, towns and settlements will be gasified during this year. We understand the true joy of local people, especially in rural areas, when gas is delivered to their households: that means the improvement in the quality of life and makes the agricultural labor more attractive. I believe that Gazprom's strategic task – advancing the gasification of Russia to the maximum economically viable level – will be achieved,” said Valery Golubev.
After completion of the celebrations Valery Golubev and Valery Serdyukov signed the Agreement of Cooperation for 2012 between Gazprom and the Leningrad Oblast Government.
According to the document, the regional gas supply system development and execution of the Gryazovets – Vyborg gas pipeline construction project in the Oblast will remain the key areas of interaction.
Gazprom and the Leningrad Oblast Government will continue with the purpose-oriented programs on building the new heat supply systems and retrofitting the existing ones. The Company will allocate RUB 680 million for these purposes next year.
The parties will also continue joint efforts on wider use of natural gas as a motor fuel.
The Oblast Government will provide tax exemptions and other benefits stipulated by the law to the companies participating in the programs for gasification and construction of heat supply facilities in the region. Gazprom and its subsidiaries will be assisted in the land allocation issues. Besides, the Leningrad Oblast Government will ensure the preparation of new consumers for gas supplies and, within its power, promote regional regulatory documents stimulating wider use of natural gas as a motor fuel.
On its part, Gazprom will secure uninterrupted gas supplies to the Oblast consumers. The Company will continue gasification of the region and, inter alia, allocate funds in its investment program to accomplish design and survey work for a gas lateral to Primorsk.
Background
Gazprom and the Leningrad Oblast Government signed the five-year Agreement of Cooperation in April 2003 with the Supplementary Agreement extending its duration for an indefinite period signed in February 2008.
Between 2003 and 2010 Gazprom allocated over RUB 3.4 billion for the Leningrad Oblast gasification, thus raising the regional gasification level by 9.7 per cent – up to 59.6 per cent. The identical figure throughout Russia averages 63.1 per cent.
In 2011 the Company committed RUB 500 million to complete the construction of seven inter-settlement gas pipelines in the Leningrad Oblast. Five of them have been built and another two pipelines are planned to be constructed by the end of the year.
Gas is supplied via the Gryazovets – Vyborg gas pipeline to the Nord Stream gas pipeline as well as to consumers of Russia's Northwestern region. Its length is 900 kilometers and nominal capacity – 55 billion cubic meters of gas. The gas pipeline runs across the Vologda and the Leningrad Oblasts. The gas pipeline is being commissioned in a phased manner starting from 2011. The gas pipeline is to achieve the nominal capacity by late 2012.
Under the Gazprom to Children program the Company constructed four sports and health centers and five sports grounds in the Leningrad Oblast.