OREANDA-NEWS. On March 6, 2007, a working meeting between Gazprom's Management Board Chairman Alexei Miller and RAO UES Management Board Chairman Anatoly Chubais was held in Gazprom Headquarters. Among the issues discussed by the companies' chief executives were: gas deliveries to RAO UES power plants, including the second power unit of the Severo-Zapadnaya CHPP; long-term contracts to supply natural gas to power facilities; gas supplies to the power plants envisaged by the RAO UES Investment Programme; execution of an agreement between RAO "UES of Russia" and OOO "Mezhregionenergosbyt".

During the meeting, the parties agreed on the basic principles for long-term contracts. They confirmed the following volumes of natural gas deliveries to energy enterprises under the long-term contracts: 162,9 billion m3 in 2007, 166,9 billion m3 in 2008, 174,8 billion m3 in 2009, and 186 billion m3 in 2010, which is in line with the Russian Government's Protocol No. 42, dated 30 November 2006. OAO "Gazprom" will supply 103 billion m3, and any additional volumes will be purchased from independent gas producers and on the trading floor maintained by OOO "Mezhregiongaz". The companies also agreed that the amounts of gas provided by the contracts for 2006-2007 will be sold at the price set pursuant to Clause 3 of the Russian Government's Protocol No. 42 of 30 November 2006, and that any gas in excess of such amounts would be sold at prices to be agreed by the parties.

They also agreed that the long-term contracts would be based on the "take or pay" principle; RAO "UES of Russia" would have the right, if technically feasible, to redistribute any amounts of gas not taken by it among its gas consuming entities, or to postpone the gas deliveries until later periods.

A decision was taken at the meeting to create Joint Operational Headquarters for coordination of repair works in summer and during cold periods in winter. This body is intended to ensure prompt handling of gas delivery issues to RAO UES power plants, as well as reliable power supply to the Unified Gas System, taking into account the summer repair works to be carried out at facilities of RAO "UES of Russia" and OAO "Gazprom", as well as the 2007-2008 autumn/winter peak load and anticipated increase in electricity use. The Headquarters will be co-chaired by Boris Posyagin, Head of Gazprom's Central Production and Dispatching Department, and Victor Pauli, member of RAO UES Management Board and Chief Technical Inspector. Alexei Miller and Anatoly Chubais constructively discussed the RAO UES reorganization model approved by the Board of Directors of RAO "UES of Russia" on 2 March 2007, and confirmed their readiness for joint work on further elaboration of the model.