Led by Alexander Ananenkov, Deputy Chairman of Gazprom Management Committee, the Company’s delegation has taken a business trip to the Kamchatka Krai.

Within the trip the delegation visited construction facilities of the Sobolevo – Petropavlovsk-Kamchatsky gas pipeline and drilling facilities for gas production wells, as well as inspected the field pre-development infrastructure in the western part of the Kamchatka Peninsula.

Alexander Ananenkov held a working meeting dedicated to the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky investment project. Taking part in the meeting were Sergey Pakhomov, Deputy Chairman of the Kamchatka Krai Government, heads and specialists from Gazprom Administration specialized subdivisions, subsidiaries and contracting agencies.

Alexander Ananenkov emphasized that Gazprom was implementing this investment project in compliance with the assignments of President and the Government and according to the preset schedule that was being met.

Based on the meeting results Gazprom’s specialized subdivisions and subsidiary companies were entrusted with the tasks aimed at finalizing the first start-up complex of the project for gas supply to the Kamchatka Krai within the prescribed term.

As part of the delegation’s visit to the Kamchatka Krai, Alexander Ananenkov met with the Krai’s Governor Alexey Kuzmitsky. The parties discussed the progress with the Agreement of Cooperation and the Accord on Gasification between Gazprom and the Kamchatka Krai Government. Special attention was paid to the timely preparation of the regional consumers for gas supply.

Background:

In September 2007 the Russian Government adopted the decision prescribing Gazprom to join the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project Gazprom is pre-developing the Kshukskoye and Nizhne-Kvakchinskoye fields on the western coast of the Kamchatka Peninsula and is constructing the Sobolevo – Petropavlovsk-Kamchatsky gas trunkline projected for commissioning in 2010. The project also stipulates developing gas distribution networks in Petropavlovsk-Kamchatsky.

The total length of the gas pipeline accounts for 392 km, of which around 290 km of pipes have been welded and trenched. Production drilling is underway in the Kshukskoye and Nizhne-Kvakchinskoye fields.

Gazprom invest Vostok (wholly-owned subsidiary of Gazprom) acts as the customer for the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky investment project.

Gazprom and the Kamchatka Krai Government entered into the Accord on Gasification in January 2008, and into the Agreement of Cooperation in February 2009.

The gasification level in the Kamchatka Krai is below 1 per cent (LNG is not supplied). Natural gas in the amount of 9 million cubic meters is supplied to the settlements of Sobolevo and Krutogorovsky on the western coast of Kamchatka from the Kshukskoye gas and condensate field.

The regional gas production and transportation is effectuated by Kamchatgazprom (92.25 per cent state-owned).