OREANDA-NEWS. November 28, 2011. Today in the presence of Dmitry Medvedev, President of the Russian Federation Alexey Miller, Chairman of the Company's Management Committee and Andrey Nelidov, Head of the Republic of Karelia signed in Petrozavodsk a new Accord on Gasification as part of the First Karelia International Forum “Investments in the Future”.

The document stipulates that the Republic of Karelia gasification will be implemented by the parties under the unified long-term strategy contemplating the maximum reasonable natural recourses use. The region will be gasified not only with pipeline gas but also with compressed and liquefied natural gas and liquefied petroleum gas.

The annual gasification programs will be implemented according to the General Gas Supply and Gasification Scheme. And the General Scheme could be adjusted on mutual consent. Besides, a three-year action plan will be compiled for the Republic gasification.

The Government of the Republic will prepare consumers for gas deliveries, including gas metering equipment installation. While implementing gasification programs, Gazprom will be supported in land allocation.

The Company will participate in grid and standalone gasification facilities designing and construction according to the General Scheme and will deliver gas to the regional consumers on a reliable basis.

According to the Accord, the parties will set up an energy saving program taking in consideration the regional energy mix, examine the possibility of high energy efficiency zones creation and continue promoting the use of natural gas as a motor fuel in Karelia.

The Accord on Gasification of the Republic of Karelia has no expiry date.

Alexey Miller and Andrey Nelidov discussed the progress in gasification of the Republic of Karelia. It was noted that Gazprom had allocated RUB 230 million in 2011 (50 million more than initially planned) for 4 inter-settlement gas pipelines designing and construction.

Besides, the Government of the Republic of Karelia is preparing the feasibility study for construction of the Lodeynoe Pole (Leningrad Oblast) – Olonets – Pitkyaranta gas pipeline with the total length of 160 kilometers. It is planned that in early 2012 the document will be submitted to Gazprom for expert review.

The parties also examined the gasification prospects concerning the Pudozh District of the Republic.
Background

The Agreement of Cooperation between Gazprom and Karelia's Government was inked in 2005. The previous Accord on Gasification was signed in 2006. The Accord expired in 2011. The General Gas Supply and Gasification Scheme was endorsed in 2007.

The First Karelia International Forum “Investments in the Future” is organized by the Government of the Republic of Karelia. The Forum is aimed to determine new approaches and initiatives to use non-material and material factors of human and social development as the most important basis for modernization of Russia.