The executive board of Russian gas giant Gazprom has approved...
The executive board of Russian gas giant Gazprom has approved a program for the reconstruction and technical upgrade of its domestic gas distribution network for 2004-2008, Gazprom's press service announced.
The program requires investments of 7.95 billion rubles within the next five years, of which 4.11 billion rubles is to be spent on reconstruction, and 3.84 billion rubles on technical upgrading, the press service said.
The funds are to come from local gas distributors, Gazprom's own funds and loans.
The reconstruction and technical upgrade program is part of the last stage in the restructuring of Gazprom's domestic gas distribution network, the press service said.
In a press release Tuesday, Gazprom said it wants there to be only one natural gas distribution company in each region of Russia.
Gazprom's Deputy CEO Alexander Ryazanov, quoted in the press release, said Tuesday that the creation of single distribution companies in each region of Russia will ensure stable gas supplies, simplify the procedure of payment collection, and help to establish a single pricing policy for each region.
According to Gazprom, currently up to ten gas distribution companies may operate in each of Russia's 89 regions. (28.5 rubles -USD 1)
