Gazprom’s Headquarters hosted yesterday a working meeting held between Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee and a delegation of Korea Gas Corporation’s (KOGAS) top managers headed by Cho Kwang-Han, KOGAS’ State-authorised Auditor.

In the course of the meeting the Korean partners were acquainted with the headlines of Russia’s Energy Strategy to 2020. Among other things, the parties discussed the Russian gas industry resource base and its development prospects for the nearest decades, major principles of gas export arrangements as well as the Program on setting up in Eastern Siberia and the Far East a united gas production, transmission and supply network, taking into account potential gas exports to Asia Pacific. Simultaneosly, special emphasis was laid upon ecology-related provisions of the Program, aimed at preserving the unique natural environment of the Baikal region.

Gazprom is being actively involved in updating the Program to submit it by this year-end for the RF Government’s consideration,” – stressed Alexander Ananenkov.

In addition, the parties addressed a wide scope of matters related to potential Russian natural gas exports to the Republic of Korea. “It’s high time that we got to business. We’re ready to talk it all over,” – said Alexander Ananenkov at the end of the meeting.

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Due to limited gas reserves, the Republic of Korea is currently producing an insignificant amount of gas.

At present, the South Korean gas market is practically 100% dependent on liquefied natural gas (LNG) imports. In 2003, Korea imported 18 million tons of LNG. The country counts on a manifold gas transmission system connecting onshore LNG-reception terminals with major consumption areas. As a result, not only the power generation sector but the industrial and residential sectors, as well, are large gas consumers in the Republic of Korea.

Incorporated in 1983, Korea Gas Corporation KOGAS is 62%-owned by the State. KOGAS’ major business lines are construction and operation of LNG (liquefied natural gas)-reception terminals and gas-distribution networks; implementation of foreign gas projects; research and technical development for the gas industry. The company owns 3 LNG terminals and a 2,442-km-long gas-distribution network.

Under the 5-year Cooperation Agreement on Russian natural gas deliveries to the Republic of Korea, dated 12 May 2003, Gazprom and KOGAS set up the Standing Joint Committee for Cooperation between the Companies, which first convened in February 2004, in Seoul.

DIVISION OF RELATIONS WITH MASS MEDIA