The Board of Directors meeting has adjourned at the Gazprom headquarters.

The Board of Directors considered the issue of energy saving technologies implementation by Gazprom. The Management Committee was tasked to arrange utilization of energy saving technologies and equipment by the Company in order to ensure that annual consumption of fuel and energy resources for technological needs is reduced by at least 1.2 per cent through to 2020.

In addition, the Board of Directors considered the information on the efforts taken to enhance the performance of Mezhregiongaz and to optimize (reduce) the company’s costs.

Background:

Unlocking the energy saving potential is provided for in the Russian Presidential Directive “On certain measures to improve energy and environmental efficiency of the Russian economy”, Russia’s Energy Strategy up to 2020, and the Federal Law “On energy saving and energy efficiency improvement, as well as on making changes in certain legal acts of the Russian Federation” approved in November 2009.

Gazprom’s energy saving and environmental actions are taken in compliance with the requirements of the Russian legislation in force, the Gazprom Energy Saving Concept for 2001–2010 and corporate energy saving programs.

Russia’s Energy Strategy up to 2020 stipulates that specific consumption of fuel and energy resources for technological needs by the fuel and energy sector is annually reduced by at least 1 per cent.

Gazprom’s own energy consumption makes up 78.2 million tons of fuel equivalent.

As part of the Energy Saving Program for 2007–2010, Gazprom is going to save in the order of 11 million tons of fuel equivalent including 9.3 billion cubic meters of natural gas, around 1.3 billion kWh of electric energy, 1.2 million Gńal of heat energy and 30 thousand tons of fuel equivalent of diesel and boiler-furnace fuel.

The maximum effect of energy saving activities, 85 per cent of the total fuel and energy resources saving, is to be reached in the gas transmission sector. For this purpose, Gazprom is widely utilizing special equipment enabling to avoid gas losses in technological and repair operations at the gas transmission system (GTS) facilities, energy efficient equipment for the GTS linear part, compressor and gas distribution stations, as well as programmed computing systems to simulate and optimize GTS operation modes.

In the gas production sector the Company is actively utilizing new well testing and repair technologies, improved gas pumping units and a number of other energy saving solutions.

In addition, Gazprom will continue advancing innovative developments in this sector. At present, the Company is engaged in a series of R&D activities that may save considerable energy resources utilized for the Company’s specific needs. The main activity areas are: efficient utilization of low-pressure gas, liquid fuels production from associated petroleum gas and renewable energy sources development.