Today, at the Gazprom Headquarters, Alexey Miller, Chairman of the Gazprom Management Committee and Alexander Berdnikov, Head of the Altai Republic have inked a Cooperation Agreement and Gasification Accord.

The Agreement pursues the objective of organizing joint work to expand the Unified Gas Supply System to the Russian East and executing large-scale gas projects, primarily the Altai gas pipeline construction project.

The Republican Government is intent on assisting Gazprom in:

• coordinating the implementation of the Development Program for an integrated gas production, transmission and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia Pacific countries;
• creating a favorable investment and taxation environment needed for the efficient activity of Gazprom.

Taking into consideration existing requirements towards rational nature management and environmental protection, Gazprom, on its part, will implement projects to promote gas supply to and gasification of the region, and will secure reliable natural gas deliveries to regional consumers in the contracted amount.

The Accord contemplates Gazprom’s participation in the gasification of the Altai Republic.

In pursuance of the Accord, the parties will develop an Investment Project for the gasification of the region, including a feasibility study, general gasification scheme and viability construction report for gas supply facilities based on a comprehensive approach to gas utilization.

On the platform of the Investment Project the parties will devise together with Mezhregiongaz a by-stage gasification program for the Republic and identify financing sources and schemes.

The parties agreed to develop regional programs covering energy saving measures as well as conversion of motor vehicles and agricultural equipment to compressed and liquefied gas.

Reference:

The Government of the Altai Republic and Gazprom had entered into the Cooperation Agreement on January 15, 2001. The Agreement term has expired.

Liquefied natural gas penetration in the residential sector of the Altai Republic is currently at 64 per cent (74 per cent in cities and towns, and 60 per cent in rural area).

In March 2006, Gazprom and China National Petroleum Corporation (CNPC) inked a Protocol on natural gas supply from Russia to the People’s Republic of China. The Agreement fixes the major agreements for the gas supply timing, amount and routes, and for the pricing formula principles. First Russian natural gas is anticipated to be delivered to China in 2011.

An initial stage is expected to see the creation of a new Altai gas transmission system that will run through the western section of the Russia-China border and will link West Siberian fields with the Xinjiang Uygur Autonomous Region (western China).