The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Valery Gaevsky, Governor of the Stavropol Krai.

The parties addressed the status of the Cooperation Agreement between Gazprom and the Stavropol Krai Government.

A focus also fell on the possibility to revamp the Pyatigorsk automated gas distribution station with a view to raising its design capacity. This is conditioned by the construction of new residential districts in this resort city. As was noted, during the current year Gazprom would perform design and exploration work at this facility.

Alexey Miller drew Valery Gaevsky’s attention to the sharp increase in gas debt owed by the Krai’s consumers for the supplies of this year as well as emphasized the need to reinforce the payment discipline.

Background:

The Cooperation Agreement between Gazprom and the Government of the Stavropol Krai was signed in June 2006 with no time limitation. The Gasification Accord was inked in May of the same year.

In 2008 Gazprom supplied the Stavropol Krai’s consumers with some 11 billion cubic meters of natural gas and roughly the same amount is slated for this year.

Between 2005 and 2008 Gazprom committed RUB 865.49 million for the gasification of the Stavropol Krai.

Natural gas penetration in the Stavropol Krai accounts now for 91 per cent including 91.5 per cent in cities and towns and 90.2 per cent in rural area.

The gas arrears of the Stavropol Krai consumers has increased almost by RUB 815 million over three months of this year and exceeded RUB 1,646 billion as of April 1. The bulk of the debt is owed by the residential sector and utilities.