A working meeting between Alexey Miller, Gazprom’s Management Committee Chairman and Jong Tae Ick, Extraordinary and Plenipotentiary Ambassador of the Republic of Korea in Russia, was held today at Gazprom’s Headquarters.

The parties debated the prospect of forming an integrated gas production, transmission and supply network in Eastern Siberia and the Far East.

Alexey Miller touched upon the progress in devising the State Program on comprehensive development of the East Siberian and Far Eastern fields and key principles, which this Document was based on, namely: establishing an integrated export channel and delivering gas from the gas supply network but not from separate fields.

Jong Tae Ick underscored that the Republic of Korea was one of the promising markets for Russian gas deliveries and expressed his interest in expanding dialogue with Gazprom on this matter. In particular, the Gazprom-KOGAS Working Group will start negotiating with Gazexport a long-term contract on Russian natural gas deliveries.

The parties also pointed out that the Korean side was interested in the official talks with the Russian Federation to adopt intergovernmental agreements on cooperation in the gas business and on natural gas supplies, respectively.

Reference:

Due to limited gas reserves, the Republic of Korea does not currently produce gas.

The South Korean gas market fully depends on liquefied natural gas (LNG) imports. In 2003, Korea imported 18 million tons of LNG. The country counts on a manifold gas transmission system linking onshore LNG-reception terminals with major consumption areas. As a result, not only the power generation sector but also the industrial and residential sectors are large gas consumers in the Republic of Korea.

Incorporated in 1983, the Korea Gas Corporation KOGAS is largely owned (62%) by the State. KOGAS’ major business lines are construction and operation of LNG (liquefied natural gas)-reception terminals and gas-distribution networks; implementation of foreign gas projects; research and development for the gas industry. The company owns 3 LNG terminals and a 2,442-km-long gas-distribution network.

The Joint Working Group for Cooperation between Gazprom and KOGAS was set up in accordance with the Agreement on Cooperation between the 2 companies, dated 12 May 2003.

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