The Joint Stock Company “Latvijas Gāze” informs that by November 2007 it is planned to conclude an agreement with the OJSC “Gazprom” on the natural gas supply price from January 1, 2008 to December 31, 2010. The natural gas supply price will increase, thus in 2008 an increase of natural gas end tariffs by approximately 40% is anticipated. After signing the agreement, the JSC “Latvijas Gāze” will prepare a new tariff project, submit it to the Public Utility Commission and ask to approve the tariffs for a three-year period, enabling the JSC “Latvijas Gāze” to plan its financial activity better and the customers to plan the service costs in long term. In this year, the JSC “Latvijas Gāze” plans to invest 2.5-3.0 million euros in repairs of the gas transmission pipeline “Izborsk - the Inčukalns Underground Gas Storage Facility”. Currently, the pipeline is closed, as defects were found in its diagnostics in 2006. The repairs are due to be completed by the beginning of the next injection season in April 2008. The closure of the gas pipeline will not disable injection of the necessary amount of natural gas in the storage facility, reaching the active natural gas amount of 2.3 billion m3, as there is still the other natural gas transmission pipeline “Pskov - Riga” and in this season there are smaller amounts of natural gas to be injected. In the storage facility, there is a large natural gas remainder from the previous heating season when the natural gas consumption was lower due to the atypically low air temperature. After completion of the repairs, the gas pipeline will be capable of operating at the maximum operating pressure of 55 bar and two functioning gas pipelines will fully provide for the needs of Latvia and the region in the following heating seasons. In total, from 2007 to 2010 it is planned to invest 51 million LVL in modernization and safety improvement of the gas supply system. Additional 28 million LVL are due to be invested in development of the gas supply system and construction of new gas pipelines. During the period from 1997 to 2006, 122 million LVL were invested in safety, modernization and development of the gas supply system. The JSC “Latvijas Gāze” has offered the government of Latvia to find co-financing to provision of gas supply to Alūksne, Gulbene, Ludza, Engure, Saulkrasti, Smiltene and Tukums. According to calculations by the JSC “Latvijas Gāze”, for provision of gas supply to these towns it is necessary to build more than 300 km of gas pipelines and invest 40 million LVL, of which 20 million LVL could be covered by the JSC “Latvijas Gāze”, which would comply with the criteria of investment profitability set by the company. Commercial proxy Vinsents Makaris Tel. + (371) 7369144