Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee held at the Gazprom Headquarters a meeting on gas supply to the Far Eastern regions.

Taking part in the meeting were Yaroslav Golko, Member of the Gazprom Management Committee, Head of the Investment and Construction Department; Igor Fyodorov, Member of the Gazprom Management Committee, Director General of Gazkomplektimpex; heads and experts of the Gazprom Administration core business units; heads of the Company’s subsidiaries including Gazprom invest Vostok, Mezhregiongaz, Gazprom promgaz, Giprogaztsentr and Gazflot.

The meeting addressed the progress in implementing the assignment of the Russian Federation Government concerning execution of the Sakhalin – Khabarovsk – Vladivostokgas transmission system development project. The meeting underlined that the works were being done on schedule, engineering of facilities and coordination of the potential gas transmission system route, as well as land selection paperwork were being performed to ensure initiation of the construction in 2009 and gas supply to Vladivostok within the scheduled time of 2011.

The participants discussed the key technical solutions related to the Sakhalin – Khabarovsk – Vladivostok gas transmission system development project, taking into account its staged development.

Considering Gazprom’s acquisition of the development licenses for the Chayanda and Kirinskoye fields, the Company core business units and subsidiaries were engaged upon the meeting results with arranging activities at the said fields, as well as engineering the Yakutia – Khabarovsk – Vladivostok gas transmission system and the gas processing and underground storage capacities.

Background:

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the 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.

The Eastern Gas Program prioritizes, inter alia, constructing and developing the Sakhalin – Khabarovsk – Vladivostok gas transmission system to be potentially connected with the Yakutia – Khabarovsk – Vladivostok gas pipeline.

Under the instructions of the Russian Government and pursuant to the decision of the Gazprom Board of Directors, the work is going on to develop the Sakhalin – Khabarovsk – Vladivostok gas transmission system with the view to develop gas supply to the Khabarovsk Krai and the Sakhalin Oblast, as well as initiate gas supply to the Primorsky Krai on or prior to 2011.

The Chayanda oil and gas condensate field is located in the Lensky district of the Republic of Sakha (Yakutia). The C1+C2 reserves of the field account for 1.24 tcm of gas and 68.4 mln t of oil and condensate.

In accordance with the Russian Federation Government Directive # 493-r of April 16, 2008, the license for the Chayanda oil and gas condensate field is granted to Gazprom.

The license for the Kirinskoye field is granted to Gazprom pursuant to the Russian Federation Government Directive # 666-r of May 6, 2008.

Gazprom invest Vostok (a wholly owned subsidiary of Gazprom) is appointed as the investment projects customer for the construction of the Sakhalin – Khabarovsk – Vladivostok and Yakutia – Khabarovsk – Vladivostok trunklines.