Level of gasification could be raised to 85% from current 64% - Gazprom Deputy CEO Golubev
MOSCOW. July 21 (Interfax) - The gasification level in Russia could be raised to 85% from the current 64%, Gazprom Deputy CEO Valery Golubev said at a government session.
Intensifying the gasification effort would be absolutely beneficial for Gazprom, because it has substantially increased gas production on the Yamal Peninsula and in Siberia and the Far East. "The volume of production capacity significantly exceeds the consumption volume that has taken shape. According to our assessments, the average level of gasification in Russia may total about 85% compared with 64% as of today," he said.
"We have formed good working relations with the regions, all the regulations have been drawn up. But there are two factors affecting the annual volume of investment in gasification. These are the financial abilities of Gazprom and the federation entities for synchronized fulfillment of obligations and the economic expedience of new gasification projects," he said.
Gazprom has a road map for gasification under the Eastern Program under which, taking into account the ineffectiveness of a number of projects, "the calculated tariff will substantially exceed that in the European zone," Golubev said. Therefore, without comprehensive measures of state support, without receiving status as social projects in the eastern part of the country, it will be difficult to approve massive, intensive gasification in the eastern part of the country, he said.