Today the Company’s Headquarters hosted a meeting moderated by Alexey Miller, Chairman of the Gazprom Management Committee, and devoted to gas supplies to Asia-Pacific countries.

Participating in the meeting were heads and experts from the structural units of Gazprom’s Administration and subsidiary companies.

It was highlighted that gas supplies to Asia-Pacific countries were of utter importance for the diversification of Russian gas export routes. Natural gas would be exported from Western Siberia and eastern Russia via the evolving Unified Gas Supply System on the basis of intergovernmental and commercial documents relying on internationally accepted gas trading principles.

The meeting participants stressed that supply volume could be substantial and potentially commensurable with the European route. Therefore, consolidating the position on Asia-Pacific markets is among Gazprom’s paramount tasks. It was emphasized that as part of the Eastern Gas Program execution, gas exports would be launched once the domestic consumers were supplied with gas.

“Gazprom’s abundant resource base in Western Siberia, to be subsequently accompanied by the new gas production center being formed in the Republic of Sakha (Yakutia), enables to meet the long-term demand for Russian natural gas in Asia-Pacific countries. There is no need to engage additional gas resources for this purpose from other eastern regions of Russia, namely, from the Kovykta gas and condensate field in the Irkutsk Oblast.

Gazprom is consecutively developing in Russia’s Far East the gas production infrastructure that will create a favorable environment for natural gas supplies in the strategic eastern direction. Upon completion of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) we are going to set to the Yakutia – Khabarovsk – Vladivostok GTS construction in 2012. This will ensure successful gas supply to southern regions of the Far East and will help develop natural gas exports (both by pipeline and by sea) to Asia-Pacific countries, inter alia, through establishing gas liquefaction and compression capacities in the Primorsky Krai,” stated Alexey Miller.

Background:

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

On October 17, 2006 the Government of the Russian Federation and the Government of the Republic of Korea signed in Seoul the Agreement of Cooperation in the Gas Industry. Pursuant to the Agreement, Gazprom and Kogas were identified as the companies authorized to oversee natural gas deliveries from Russia to the Republic of Korea. On September 29, 2008 Gazprom and Kogas signed the Memorandum of Understanding on natural gas supplies from Russia to Korea as an expansion to the Agreement. The Cooperation Agreement was inked by Gazprom and Kogas on May 12, 2003 and extended for another five years in 2008.

In 2009 the Governments of the Russian Federation and the People’s Republic of China, as well as Gazprom and China National Petroleum Corporation signed a number of documents surrounding natural gas supplies from Russia to China. Besides, in December 2009 Gazprom export and PetroChina International, a subsidiary of CNPC, signed the Agreement on Major Terms and Conditions of Gas Supplies from Russia to China.

On May 12, 2009 Gazprom, Japan’s Natural Resources and Energy Agency and a number of Japanese companies signed the Memorandum of Understanding for natural gas exports from Russia to Japan.