September 24, 2008

Gazprom Signs Gasification Agreement With Yamal-Nenets Government

Gazprom and the government of Yamal-Nenets Autonomous Okrug in Russia have signed a co-operation agreement for the gasification of the region in 2009.

The agreement contemplates co-operation between the parties in a wide range of issues including gasification of the region; utilization of modern renewable electricity sources; introduction of distributed energy sources and environmentally friendly technologies for gas supply facilities; wider use of natural gas as a vehicle fuel; conversion of gas-fired boiler houses to the cogeneration regime; utilization of low-pressure and associated petroleum gas as a fuel during the construction of new power plants.

In 2009, Gazprom will keep constructing facilities as part of a gas pipeline branch to the Salekhard, Labytnangi and Kharp towns in Yamal-Nenets, and begin work on the gas pipeline to the Urengoy urban settlement.

The parties will continue the work aimed at stimulating their investment, R&D and innovation activities, and implementing effective joint projects in the Yamal-Nenets Autonomous Okrug. The interaction will continue within the Comprehensive Development Program for Yamal Peninsula Onshore and Offshore Fields.

The Yamal-Nenets authorities are expected to assist Gazprom's subsidiaries operating on the territory of the region in solving right-of-way related issues, agreeing on design and estimate documentation, performing design and survey and construction work. The agreement is also targeted at promoting cooperation in the energy saving, capital construction, transportation areas, tax and social policy.