The Supervisory Board meeting of EuRoPol GAZ was held in St. Petersburg. The meeting was chaired by Alexander Ananenkov, Chairman of the Supervisory Board, Deputy Chairman, Gazprom Management Committee.

The Supervisory Board was briefed by the Management Board on the completion of construction and bringing into operation of Zambruv compressor station.

During the meeting the Supervisory Board reviewed the information on investment and operational expenses of EuRoPol GAZ in 2006, and recommended the Management Board to continue its work in this respect to present the results at the next meeting of the Supervisory Board.

The Supervisory Board members were briefed on major Russian gas transit tariff determination characteristics to be further approved by Poland’s Energy Regulation Authority.

The meeting’s participants also discussed the issue of EuRoPol GAZ’s organizational structure improvement, and other issues falling within the terms of reference of the Supervisory Board.

Reference:

EuRoPol GAZ Transit Gas Pipeline System was incorporated as a joint stock company in September 1993. The company was established within the framework of the intergovernmental “Agreement on the construction of a gas pipeline system for the transit of Russian gas through the territory of the Republic of Poland and Supplies of Russian gas to the Republic of Poland” of August 25, 1993. EuRoPol GAZ’s key businesses include design, construction and operation of the Polish section of Yamal-Europe gas pipeline.

EuRoPol GAZ is the owner of the 684 km Polish section of Yamal-Europe gas pipeline. The gas pipeline’s current annual capacity is about 28 bcm. Once Zambruv compressor station is operational, the pipeline’s capacity will reach its planned design capacity of 32.9 bcm/year.

Gazprom and the Polish Oil and Gas Company (PGNiG) are the principal stock holders of EuRoPol GAZ.

Poland’s annual gas consumption amounts to 12 bcm, with 30% of demand covered by local natural gas production. In 2004, Poland imported about 6.3 bcm of Russia produced natural gas.