Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company’s delegation finalized its business trip to Novy Urengoy.

Today the delegation visited the facilities under construction at the Novy Urengoy gas chemical complex (GCC). Alexander Ananenkov held there a meeting involving representatives from customer enterprises and contracting agencies relevant to the GCC construction.

Background:

In March 2008 the Gazprom Board of Directors approved the Development Strategy for the Company’s gas chemical and gas processing facilities.

According to the Strategy, Gazprom’s major goal in the gas processing and gas chemical sectors is an increase in extraction level and effective utilization of valuable components of natural gas and associated petroleum gas (APG) with a view to their further processing into readily marketable products with a high added value.

The Strategy envisages minimization of the production prime cost including through optimization of logistics costs and utilization of new technologies. Another means of bringing the gas chemical business to the new level of efficiency is further improvement of the finance and managerial control system when delivering investment projects.

At present, Gazprom is implementing the following investment projects in the gas processing and gas chemical sectors: construction of a gas chemical complex in Novy Urengoy, where production of 400 thousand tons of polyethylene per annum will be arranged, as well as reconstruction of Gazprom dobycha Astrakhan and Gazprom dobycha Orenburg gas processing capacities. Sibur Holding also launched the program for APG processing capacities buildup.

Gazprom is considering the issues of creating gas processing and gas chemical capacities in Eastern Siberia and the Far East.