Gazprom’s Headquarters today has hosted a working meeting between Alexey Miller, Chairman of Gazprom Management Committee and Alexander Berdnikov, Head of the Altai Republic.

The meeting addressed issues linked to the development of a General Scheme for gas supply to and gasification of the Altai Republic, taking into account projected construction of the Altai gas pipeline.

The meeting also discussed a range of social projects planned by Gazprom for implementation in the Republic.

“Implementing the Altai project will make it possible to provide with natural gas the population centers adjoining the pipeline route and create new jobs, with special attention to be paid to environmental aspects along the entire pipeline route,” stated Alexey Miller.

“Gazprom’s presence in the Altai Republic gives another strong impetus for socioeconomic development of the whole region. Gasification of Altai will not only substantially enhance the people’s living standards but also improve the ecological situation in the cities, including Gorno-Altaisk, where boiler plants are currently only coal-powered,” said Alexander Berdnikov.

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The Government of the Altai Republic and Gazprom entered into an Agreement on cooperation on January 15, 2001.

Liquefied natural gas penetration in 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 the 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 foundation of the new Altai gas transmission system that will run through the western Russian-Chinese border and will link West Siberian fields with the Xinjiang Uygur Autonomous Region (western China).

Gazprom and its Chinese counterparts have so far completed feasibility studies for the Altai project both in Russia and China. The studies have shown that the project is technically feasible. Currently, Gazprom and CNPC are in the commercial talks projected to be finalized in 2006.