Today, at the Gazprom Headquarters Alexey Miller, Chairman of the Gazprom Management Committee met with Lee Soo Ho, President & Chief Executive Officer of KOGAS Korea Gas Corporation.

The parties discussed issues in relation to the pipeline gas deliveries to Korea as well as further cooperation in the LNG sector.

Alexey Miller and Lee Soo Ho highlighted the basic approaches for cooperation between the companies in the framework of joint gas exploration, production and marketing projects in third countries as well as introduction of new technologies to produce synthetic fuels from natural gas (GTL and DME technologies).

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At present, the Republic of Korea is almost fully dependent on LNG imports. The South Korean gas market is featured by a manifold gas transmission network linking onshore LNG terminals with major consumption provinces, which helps widely use natural gas both in the power generation and industrial & household sectors.

Founded in 1983, KOGAS Korea Gas Corporation is a 62 per cent state-run company. KOGAS’ major business lines are construction and operation of LNG import terminals and gas distribution stations, implementation of international gas projects and research for the gas industry. The company owns three LNG import terminals.

On May 12, 2003, Gazprom and KOGAS entered into a five-year Agreement of cooperation. The Agreement covers a broad spectrum of issues including potential deliveries of Russian natural gas to the Republic of Korea.

To implement the Agreement, the parties set up a permanent joint Working Group.

In October 2006 Gazprom Marketing and Trading Ltd. (GMT) (the Gazprom Group subsidiary) accomplished the first LNG delivery to Korea. LNG was deliveries to Pyeongtaek regasification terminal of KOGAS National Korean Gas Company at the amount of 145 thousand cubic meters (nearly 92 mcm of natural gas).

On October 17, 2006 the Intergovernmental Agreement for gas deliveries to Korea signed in Seoul set up necessary conditions for negotiations between Gazprom and KOGAS for Russian gas export.