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Medvedev to chair session of govt commission on economic development of North Caucasus

December 18, 2013, 7:09 UTC+3 MOSCOW
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MOSCOW, December 18, 5:17 /ITAR-TASS/. Russia's Prime Minister Dmitry Medvedev will hold Wednesday a session of the government commission on the socio-economic developmen of the North Caucasus.

An official in the Russian government press service said the Commission members intend to discuss matters relating to the development of the fuel and energy sector in the country's North Caucasian Federal District (NCFD).

As of now, operating in NCFD territory are such major oil and gas companies as Rosneft, Gazprom, LUKOIL, and Transneft, a government official recalled. Rosneft accounts for almost the entire amount of oil production (99.8 percent), whereas the share of the other producers is not more than 0.2 percent.

The construction of an oil refinery with a capacity of one million tonnes a year in primary processing of oil is under way at the seaport Makhachkala. The refinery's coming on stream is expected as early as in 2014. Eighty-four mini-refineries are also in operation in the NCFD.

Transit oil trunklines of the Caspian pipeline transportation consortium and the Baku-Makhachkala-Novorossiisk pipeline run across the NCFD territory to ensure the supply of the raw oil of Caspian countries and Russia to the outside markets across the Black Sea. Stavropol Territory, Daghestan and Chechen Republics are major gas producing regions in the NCFD.

Coal is not mined in the NCFD in commercial quantities and, accordingly, the District's requirements for coal are met resultant of deliveries from Kemerovo Region (South Kuzbass management company) and from the Khakass Republic -- Stepnoi Razrez (steppe quarry) management company. Coal is used chiefly to meet the needs of the population, public utilities, and the agri-industrial sector.

North Caucasus is notable for an electricity generation surplus. It will tranmit electric power to the related power systems of the Southern Federal District (Kuban and Kalmykia power grids). In accordance with the flow chart and programme for the development of the United Energy Systems of Russia for the 2013-2019 period, the installed capacity of NCFD power stations will increase by 15 percent as compared with that in 2012 or by 1,054 megawatts and will amount to 7.96 gigawatts in 2019.

Meanwhile, the users' indebtedness to the resource-providing organizations remains a problem in the NCFD. As of November 2013, gas users' stale debts in the District amounted to 48 billion roubles.

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