Led by Alexey Miller, Chairman of the Management Committee, Gazprom’s delegation has finalized a business trip to the Republic of Korea, holding a meeting with Lee Hee-Beom, Korean Commerce, Industry & Energy Minister and Lee Soo-Ho, President of KOGAS.

The parties addressed the prospects for the Russian-Korean cooperation in the oil & gas sector, reviewing, in particular, issues relative to the preparation and subsequent implementation of Russian natural gas supply by pipeline to South Korea projects, with “an integrated export channel” being a basic principle, according to Alexey Miller.

The meeting also pondered on potential sci-tech cooperation in the gas industry, Gazprom’s participation in hydrocarbon extraction, transmission, processing and supply projects being implemented in Korea as well as on matters surrounding the Korean gas infrastructure development.

Lee Hee-Beom confirmed the South Korean leadership’s readiness to render a full-fledged support for deepening business cooperation between Gazprom and Korean energy firms.

During an Asia-Pacific Economic Cooperation (APEC) forum, Gazprom, Vnesheconombank and PTT Public Company Limited (Thailand) entered into an Agreement on strategic cooperation.

Under the Agreement, the parties will focus on the following key activities in Thailand and third countries:

 - prospecting for hydrocarbons;

 - producing, transmitting, processing and marketing natural gas, oil and other energies;

 - engineering, constructing and operating trunk lines, gas distribution and gas-powered facilities, oil and gas storage depots;

 - using gas as motor fuel, developing and operating a network of automated gas-refueling compressor stations;

 - supplying petrochemicals and gas processing products;

 - supplying gas industry equipment.

The parties are also intent on interacting in the sci-tech, qualification upgrading and personnel training sectors.

Vnesheconombank will act as financial agent for potential projects to be implemented under the Agreement.

To successfully implement the Agreement, the parties will set up a Joint Coordinating Committee.

“Gazprom’s strategy is aimed at its business globalization, which implies the whole-cycle chain availability on various continents. By implementing the Agreement with the Thai PTT company Gazprom will expand its presence in the Asia-Pacific region,” stated Alexey Miller.

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Republic of Korea

Due to limited natural gas reserves, the Republic of Korea is currently substantially dependent on LNG imports. The South Korean gas market is currently featured by a manifold gas transmission network linking onshore LNG terminals with major consumption provinces and, thus, largely contributing to the wider usage of natural gas both in the power generation and industrial & residential sectors.

The Republic of Korea is the world’s tenth energy consuming, sixth oil consuming, fourth oil importing and second LNG importing country.

Thailand

Thailand’s proved natural gas reserves account for 430 bcm. In 2004, the country produced 20.3 bcm of gas, with annual consumption amounting to 28.7 bcm. The share of natural gas, oil, coal and hydropower in the Thai energy basket stands at 32, 54, 12 and 2 per cent, respectively.

Thailand is aggressively developing its gas transmission network consisting of the 1,400-km-long offshore (the most developed) and 1,250-km-long onshore sections. At present, the country is working through a string of new subsea gas pipeline construction projects.

PTT Public Company Limited is the only Thai top-down petroleum business 52 per cent-state owned and 48 per cent-stock market traded. The company is a prominent national supplier of oil, gas condensate and refining products.