A working meeting between Alexey Miller, Chairman of Gazprom Management Committee and Oleg Betin, Head of the Tambov Oblast Administration took place today at the Company’s Headquarters.

The parties discussed the status of the Cooperation Agreement, placing an emphasis on the regional gasification issue. In particular, they reviewed the construction of the Tokarevka – Mordovo and Rzhaksa – Inzhavino gas laterals. It was pointed out that the gas pipelines were being constructed according to schedule.

Background:

The Cooperation Agreement between Gazprom and the Tambov Oblast Administration was signed in April 2004, the Gasification Accord – in April 2003.

In 2008 Gazprom supplied the Oblast consumers with approximately 1.8 billion cubic meters of natural gas. Roughly the same volumes are slated for the current year.

Natural gas penetration in the Tambov Oblast accounts for 66.8 per cent, with 87.7 per cent in cities and towns and 43.1 per cent in rural area. The identical figures throughout Russia average 62, 67 and 44 per cent respectively.

Between 2002 and 2008 Gazprom committed around RUB 1.2 billion to gasify the Tambov Oblast.

In 2009 the Company will invest additional RUB 350 million in the Oblast gasification. The funds will be used to construct eight inter-settlement pipelines with a total length of 127.9 km. At the same time, the Tambov Oblast Administration will construct 131.1 km of gas distribution pipelines, switch 11 boiler houses to gas and supply gas to 3,677 households.