The Gazprom Headquarters today has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Alexander Mikhailov, Governor of the Kursk Oblast.

The parties highly appreciated the results of joint gasification businesses in the region and noted that the work was progressing ahead of schedule.

Alexey Miller and Alexander Mikhailov discussed issues surrounding the construction of the Sudzha – Korenevo – Glushkovo gas branch pipeline and an automated gas distribution station in the Glushkovsky district of the Kursk Oblast.

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A five-year Agreement of cooperation between Gazprom and the Kursk Oblast authorities had been signed in December 2002.

In 2005 Gazprom supplied the region with 1 bln 865 mcm of gas and roughly the same volumes are slated for this year.

As of September 1, 2006, the gas debt of the Kursk Oblast to Gazprom makes up some RUR 60 mln.

Natural gas penetration in the regional household sector increased by 1.5 per cent over 2002 through 2005 and, as of January 1, 2006, reached 54.2 per cent including 75.2 per cent (+2.3 per cent) in cities, towns and settlements, and 25.7 per cent (+2.5 per cent) in rural area. The identical Russia-averaged rates are at 53.0, 60.0 and 34.7 per cent, respectively.

Under the gasification programs for Russian Federation regions between 2002 and 2004, Gazprom committed RUR 110 mln to construct gas distribution networks in the Kursk Oblast. The Gazprom Gasification Program for 2005 to 2007 contemplates earmarking RUR 1.1 bln to build 23 in-settlement pipelines having a total length of 346 km.

Between 2005 and 2007, the Kursk Oblast authorities, on their part, plan to construct 317 km of in-settlement (distribution) pipelines and gasify 8.9 thousand apartments, with RUR 900 mln to be allocated for these purposes at the expense of the regional budget, private investors and the population.

The Gazprom Investment Program for 2006 stipulates committing RUR 8 mln to perform the design & survey work for the construction of the Sudzha – Korenevo – Glushkovo gas branch pipeline and an automated gas distribution station in the Glushkovsky district of the Kursk Oblast. A draft Investment Program of Gazprom for 2007 prescribes earmarking RUR 334 mln to bring the said facilities online in 2007.