From left to right: Ron Brenneman, President and CEO of Petro-Canada, a Canadian oil and gas corporation and Alexei Miller, Chairman of Gazprom's Management Committee sign a Memorandum on mutual understanding

From left to right: Ron Brenneman and Alexei Miller

Alexei Miller, Chairman of Gazprom's Management Committee, and Ron Brenneman, President and CEO of Petro-Canada, a Canadian oil and gas corporation, signed a Memorandum on mutual understanding at Gazprom headquarters.

The Memorandum stipulates a study of possibilities for LNG deliveries from Russia to the North American market by 2009.

According to the Memorandum, a joint study on all aspects of LNG production will be carried out, including liquefaction of gas, re-gasification, and marketing of Russian LNG in the North American market. According to the Memorandum, a joint feasibility study of an LNG production facility in Leningradskaya Oblast will be done, as well as LNG deliveries from this facility to North America. The Memorandum stipulates that Gazprom and Petro-Canada will establish a Joint steering committee.

"The signing of the Memorandum is the beginning of implementation of an integrated project which includes the whole gas chain from production to sales. Gazprom intends to enter the dynamically developing American LNG market, which fully corresponds to our goal of becoming a global energy corporation", Alexei Miller stated after the signing ceremony.

"Cooperation with Gazprom is a good opportunity for Petro-Canada to increase its share in the LNG market. The Memorandum is an important step in establishing long term cooperation with Gazprom which would help our own global strategy", Ron Brenneman said.

Reference:

The United States of America is one of the most promising LNG markets in the world. LNG imports in 2003 more than doubled to 11 million tons from 4.8 million tons in 2002. According to the estimates by the Energy Information Administration of the US Department of Energy, the volume will reach 47 million tons by 2010. US's own gas production will not cover the country's needs, and increased imports will be necessary.

There are four receiving LNG terminals in the US now, with the annual capacity totaling 18 million tons. Construction of ten additional terminals is planned both on the east and west coasts with total annual capacity of 60 million tons.

Petro-Canada is the largest oil and gas corporation in Canada, and is active both domestically and abroad. Operational income in 2003 was Can$ 1.4 billion. Daily production in 2003 was 465000 barrels of oil equivalent.

Petro-Canada is doing business in five major directions. In North America, the company is involved in exploration and production of natural gas (Western Canada and the US Cordilleras), sells natural gas in the North American market, and is involved in exploration activities in other parts of the continent. The company is also involved in exploration, production and sales of oil on the East coast of Canada. In Alberta, the company produces tar and synthetic oil from oil sands. Internationally, Petro-Canada is in exploration, development, production and sales of oil and gas in Northwestern Europe, North Africa/the Middle East and the northern part of Latin America. The company also markets oil products in Canada.

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