OREANDA-NEWS. February 16, 2010. At the Gazprom Headquarters, Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee moderated a meeting dedicated to gas supply to and gasification of the Republic of Buryatia within the Eastern Gas Program.

Participating in the meeting were heads and experts from Gazprom’s specialized subdivisions and subsidiaries – Mezhregiongaz, Gazprom promgaz, Gazprom dobycha Irkutsk and Gazenergoset.

It was pointed out that gas supply to and gasification of the region would primarily rely on the General Scheme developed by Gazprom and approved by the parties in December 2009. The Scheme provides for a comprehensive approach to the gasification of Republic of Buryatia. The meeting discussed the outlook for consumption of main fuel and energy resources in the region.

Special emphasis was placed on ensuring the environmental safety during energy projects execution in Buryatia. This is mainly related to the necessary preservation of the ecosystem of Lake Baikal.

The specialized subdivisions were entrusted with the tasks aimed at developing the adjusted technical and economic parameters for top-priority gasification activities in the Republic of Buryatia.

Background

The Republic of Buryatia is not supplied with natural gas. Liquefied petroleum gas (LPG) penetration in the Republic averages 14.8 per cent. Gazprom doesn’t supply LPG to the Republic.

Gazprom and the Republic of Buryatia Administration signed the Agreement of Cooperation in March 2008 and the Accord on Gasification in June 2008.

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was identified by the Russian Federation Government as the Eastern Gas Program execution coordinator.

On December 1, 2009 the Gazprom Management Committee approved the updated Concept for the Company’s participation in the gasification of Russian regions. The Concept envisages Gazprom’s differentiated participation in the gasification process depending on the availability and the development level of natural gas reserves in the regions, as well as on the use of fuel alternatives including liquefied and compressed natural gases (LNG and CNG), as well as LPG.