Gazprom anf Leningrad Region signed Cooperation Agreemement for 2004
Alexey Miller and Valery Serdyukov sign the 2004 Cooperation Agreement between Gazprom and the Leningrad Region
Toady, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Valery Serdyukov, Governor of the Leningrad Region, signed the 2004 Cooperation Agreement between Gazprom and the Leningrad Region’s Administration. The parties pointed out that the significant growth of the Regional industrial output spurred Gazprom’s gas deliveries to the Region, some 1 bcm up on 2001.
Under the Agreement, the Leningrad Region’s gas supply system will be comprehensively developed with implication for the North-European gas pipeline construction.
Gazprom and the Leningrad Region’s Government will devise the General Scheme of Gas Deliveries to the Leningrad Region for 2005–2015, taking into account the possibility of using LNG and local types of fuel. In addition, the parties will conclude a Contract on gas supplies to the Leningrad Region.
Under the 2004 Cooperation Agreement, Gazprom will:
provide not less than 4.44 bcm of natural gas deliveries to the Leningrad Region
earmark within the Program on Gas Deliveries to the RF Regions a maximum of RUR 117.9 million of capital investments to be allocated for constructing the Regional gas supply facilities
At the same time, Gazprom will provide finance for the construction of the Regional gas supply facilities if the Leningrad Region’s municipal heat supply and state-financed bodies make 100% payments for the gas delivered.
The parties also agreed that Gazprom’ Investment Program would envisage finance to construct high-pressure facilities in the Leningrad Region: the Slantsy gas distribution station and a gas branch to the town of Primorsk. In addition, the Lentransgaz company will contribute to laying a gas branch to the settlement of Sovetsky, the Druzhnaya Gorka – Luga gas pipeline and a gas pipeline to the settlement of Kamenka as well as to providing LNG deliveries to the town of Priozyorsk.
The Leningrad Region’s Government, in its turn, binds itself to provide:
- finance for implementing the Investment Project on gas deliveries to the Leningrad Region and Regional energy saving programs;
- 100% payments for the gas supplied on the part of the Regional heat supply and state-financed bodies;
- full compensations for Gazprom’s losses incurred while granting gas subsidies to eligible consumer categories;
- for the conclusion of an agreement with the Promgaz company to devise the Leningrad Region’s Gas Supply Investment Project and General Scheme until 1 May 2004.
In addition, the Leningrad Region’s Government took the commitment to devise and approve (upon coordinating it with the Petersburgregiongaz and Lentransgaz companies) timetables for the Regional companies to shift over to a reserve fuel when it gets cold. The Regional authorities will also put under control accumulation and application of reserve types of fuel by gas consumption companies and will call infringers to account under the present-day RF and Leningrad Region’s legislation.
Background
For the time being, Gazprom and the Leningrad Region’s Administration are interacting under the 5-year Cooperation Agreement dated 28 April 2003.
In 2003 Gazprom planned to deliver 4.38 bcm of gas to the Leningrad Region and did supply 104% against the target.
Natural gas is delivered to 49.9% of the Leningrad Region’s territories, including 63.9%, to cities and 25.1%, to rural settlements (against Russia’s average of 52.7%, 60.2% and 33.1%, respectively).
As of 1 March 2004, the Leningrad Region’s debt for the gas supplied accounted for RUR 280.45 million, RUR 113.75 million up from 1 January 2004. 91.2% of gas deliveries have so far been paid for this year.
Information Directorate, OAO Gazprom