Gazprom commissions Barnaul – Biysk – Gorno-Altaisk gas pipeline
with branch to Belokurikha

Moscow, November 21 2008

The Republic of Altai hosted today the celebrations dedicated to the completion and commissioning of the Barnaul – Biysk – Gorno-Altaisk gas pipeline with a branch to Belokurikha, as well as to the launch of gas supplies to consumers in the town of Gorno-Altaisk and the settlement of Maima.

Participating in the celebrations were Alexander Berdnikov, Head of the Altai Republic, Yakov Ishutin, Deputy Governor of the Altai Krai, a Gazprom delegation led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, as well as representatives of federal and municipal authorities.

“Gazprom has made another important step towards developing the regional gasification and gas supply to eastern Russia. In 2006 natural gas arrived in Biysk, in 2007 – to Belokurikha. Today the opportunity of utilizing such a unique natural resource was granted to the Altai Republic citizens.

In future, gas will be delivered to another population centers too. Constructed by Gazprom, the Barnaul – Biysk – Gorno-Altaisk gas pipeline with a branch to Belokurikha will lay a foundation for further gasification of the Altai Krai and the Altai Republic. This will create a powerful impetus for economic growth, production development, better environmental situation and higher living standards of the population.

Gazprom pays special attention to the gasification of Eastern Siberia and the Far East. The experience gained in Altai could be used in other regions of Eastern Russia,” stated Alexander Ananenkov.

“Arrival of gas in the Altai Republic is indeed a long-awaited and historical event, a great day for all our citizens. The appearance of the blue fuel in our Republic will transform our lives. Steamshops will stop emitting fumes, in the winter we will look into the blue, clear sky and breathe with clean, fresh air. Life will be more comfortable and civilized.

But gas is not only an environmentally friendly heat source. This is also a real opportunity to develop our economy and to carry out large-scale investment projects on the Republican territory. I am convinced that it is the arrival of a gas pipeline in our Republic will mark the beginning of a new time when the living conditions both in cities and in the rural area will improve and our region will embark on a course of sustainable economic development,” said Alexander Berdnikov.

Background:

Construction of the Barnaul – Biysk – Gorno-Altaisk gas main with a branch to Belokurikha started in 2000. In November 2006 the Barnaul – Biysk section was brought online, in October 2007 – the branch to Belokurikha, in November 2008 – the Biysk – Gorno-Altaisk section. The total length of the gas pipeline made up some 320 km.

The five-year Agreement of Cooperation and the Agreement on gasification were signed between Gazprom and the Altai Krai Administration in 2004.

The gasification level of the Altai Krai is at 5.7 per cent including 8.7 per cent in cities & towns and 2 per cent in the rural area. The average gasification rates in Russia are at 62, 67, and 44 per cent, respectively. In 2008 Gazprom will invest RUB 300 mln in the Altai Krai gasification.

In 2007 Gazprom supplied the regional consumers with some 650 mcm of gas. This year projected gas supplies will reach circa 730 mcm.

The Agreement of Cooperation and the Accord on Gasification between Gazprom and the Altai Republic were signed in 2006. The documents stipulate, inter alia, Gazprom’s participation in executing efficient gas supply projects for the population and industrial enterprises of the Altai Republic.

In 2007 Gazprom allocated RUB 100 mln for the Altai Republic gasification, in 2008 – RUB 500 mln. These funds were used to elaborate the General Scheme for gas supply to and gasification of the Republic of Altai.

Information Directorate, OAO Gazprom