Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman has convened a working meeting dedicated to the implementation of the North-European gas pipeline (NEGP) construction project.

The meeting addressed the project structuring and progress in the study of a Russia-located onshore section of NEGP. The parties emphasized that the work was being done on schedule and Gazprom would have the opportunity of coming up with an investment decision and initiate the line construction in the autumn of 2005.

Additionally, the meeting explored the intensive development of the Yuzhno-Russkoye field. In particular, the parties agreed on the need to synchronize the field development and NEGP construction.

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The North-European gas pipeline (NEGP) is targeted to mark a qualitatively new phase of cooperation with European gas customers, for the first time carrying Russian natural gas directly to Europe without the transiting countries’ involvement.

The gearing up for the NEGP project implementation is progressing at full speed. A big scope of work is being performed to study a roughly 917-km-long onshore section of NEGP in Russia.

The Vologda region’s authorities have provided scrupulous analysis and forecast calculations for the existing gas line networks running in the area of the prospective NEGP route and northwestern Russia’s gas consumption given the NEGP construction, respectively. In addition, the Regional Government has so far reviewed and approved a draft transportation scheme for the NEGP construction. The NEGP transmission part and route have undergone engineering study by 85 and 63 percent, respectively. The study is projected to be completed in the third quarter of 2005.

At the same time, a technological scheme of NEGP has been devised, original data on the NEGP transmission part and all projected sites for compressor stations collected and engineering survey on NEGP-supporting infrastructure initiated in the Leningrad region.

To be brought on-line in 2010, NEGP will have 55 bcm in nominal capacity. The German Concern BASF AG will act as Gazprom’s partner in developing the Yuzhno-Russkoye field and constructing NEGP. Other West European companies capable to substantially contribute to the project will be potentially invited, as well.

Gazprom has started developing the Yuzhno-Russkoye field being the mainstay of feedstock to be shipped via NEGP. With its gas reserves valued at over 700 bcm, the field has already undergone initial seismic survey and drilling operations.

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