23 Sep 2011 15:05

Sverdlovsk Region wants Gazprom gas

YEKATERINBURG. Sept 23 (Interfax) - The administration of Sverdlovsk Region plans to sign a cooperation agreement with gas giant OJSC Gazprom in October or November.

The regional governor's information policy department told Interfax that a draft of this agreement has been sent to Gazprom for consideration. This source said that under the agreement the gas company would be supplying gas to Sverdlovsk Region households.

In return, the region would guarantee and build into its budget spending for ongoing gas deliveries, paying off gas debts, paying for electrical and thermal energy in the amount of the gas component, and spending associated with measures for social support to defined categories of citizen.

Interfax's source said the agreement is aimed at the development of bilateral relations on a long-term basis for stable economic development, the improvement of the region's investment climate, and the creation of favorable conditions for solving social problems. He did not provide other agreement details.

The region's Energy, Housing and Communal Services Ministry told Interfax that from 1999 to 2008 the sole supplier of gas to the region was oil and gas company Itera . Of the 18 billion cubic meters (bcm) of gas supplied the region needed last year, Itera provided 15.8 bcm (87.7%), and the rest came from NOVATEK and TNK-BP .

Itera plans to sell 15.6 bcm of gas in Sverdlovsk Region this year against overall assumed company deliveries of 22 bcm.

In February, Itera and the region inked a cooperation agreement good until 2015. Itera is a traditional monopoly gas-supplier to the region via CJSC Uralsevergas, set up by Itera (65%) and the Sverdlovsk Region administration.