Speech by Alexey Miller at the foundation stone laying ceremony for the 2nd power unit at the Kaliningrad CHP-2

Esteemed colleagues, dear friends,

Today there is a big celebration in the Kaliningrad Oblast-we have launched the project to construct the second power unit at the Kaliningrad CHP-2. It is no doubt that the implementation of this project will enable to fully meet increasing electricity demand in the region. As you know, the energy consumption growth is economic expansion, so we could be confident therefore about the economic future of the Kaliningrad Oblast. Such a project is neither the first, nor the last one for Gazprom. Gazprom has identified the power industry as one of its core activities. The reason for this is the synergy existing between the natural gas and power generation businesses. That is why we are saying that today Gazprom is the most efficient investor in the power industry of the Russian Federation.

For us the Kaliningrad CHP-2 project is a top priority. Gazprom is going to invest in the plant construction nearly RUB 23 bln. By 2010 power generation will double at the plant and its performance indicators will grow significantly. In two years we will be able to confidently state that we have ensured the energy security of the Russian enclave in the Baltic region and entirely solved the issues with regard to electric power and natural gas needs of the Kaliningrad Oblast.

Gazprom plays a dual role in this area. We not only invest in power generation, but also in new gas transmission capacities, in gasification. By 2010 gas deliveries to the Kaliningrad Oblast will increase twofold to 2.5 bcm. The gasification level of the Kaliningrad Oblast will grow at the same quick pace.

Esteemed colleagues, dear friends,

In conclusion I?d like to wish all of you new professional success and new achievements. I am positive that everything we have planned will be accomplished in time.

September 24 2008