Today the 5th Baikal Economic Forum held under the motto “Europe – Russia – Asian-Pacific Region: Integration and Collaboration” has opened in the city of Irkutsk.

Taking part in the Forum is a Gazprom delegation headed by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee, who has presented a speech at a plenary session.

Alexander Ananenkov emphasized that the approval of the Eastern Gas Program in 2007 and the decisions taken by the Russian Federation Government on Gazprom’s joining the Kamchatka Krai gasification project as well as to award licenses to the Company for a number of strategic fields including the Chayanda oil, gas and condensate field and the Kirinskoye gas field (Sakhalin Island) had given a new impulse to Gazprom’s activities in eastern Russia.

Over a year since the Program approval date Gazprom developed and introduced a range of measures so as to meet the preset commissioning deadlines for paramount gas supply facilities in Russia’s East. In particular, the relevant work is underway to secure the construction of the Sakhalin – Khabarovsk – Vladivostok gas pipeline, with the first startup complex to be completed in 2011 and gas production, processing and transmission capacities in the Yakutsk gas center to be brought online in 2016.

Alexander Ananenkov also underlined that Gazprom had stepped all the necessary actions to meet gas delivery deadlines for Petropavlovsk-Kamchatsky in the forth quarter of 2010. In particular, the Company completed the adjustment of the Kshukskoye and Nizhne-Kvakchikskoye fields pilot development project and the relocation of general contractors to construction sites as well as launched the construction and installation work.

The insufficiency of resources available for the project and the need to boost production for reducing the existing gas tariffs in the region require a prompt decision from Russia’s Government with regard to the expansion of the project resource base primarily through the use of the Zapadno-Kamchatsky gas block adjacent to the gas pipeline start point. This will not only enable to provide Kamchatka with gas in the long-term, but also to bring the economy of the peninsula to a new level.

The Company is consecutive in its work to form the Krasnoyarsk and Irkutsk gas production centers. At present geological exploration is underway in 23 blocks of the Krasnoyarsk Krai and Irkutsk Oblast, with over RUB 2.7 bln channeled for these purposes in the first half of the year.

Gazprom pays particular attention to the execution of the General Gas Supply and Gasification Scheme for the Irkutsk Oblast. “When implementing this Scheme we test a model of Gazprom’s interaction with independent subsurface users holding the licenses for small and medium sized fields. At the end of 2007 first gas was supplied to the Irkutsk Oblast consumers under this model,” – stressed Alexander Ananenkov. At the moment design and engineering is in progress on stage two of the Bratskoye gas and condensate field – Bratsk gas pipeline as well the Chikanskoye gas and condensate field – Irkutsk gas pipeline.

The reporter stated that Gazprom was intent on actively attracting its partners from Russia, Asia-Pacific and Europe to the implementation of gas processing projects as part of the Eastern Gas Program. Together with most of these partners Gazprom is currently engaged in the surveys primarily linked to the formation of highly technological gas chemicals facilities in Russia’s East as well as with regard to the marketing of future high added value products in foreign markets. “Such an approach will make it possible to attract both additional investment resources and cutting-edge technologies and technical solutions,” – said Alexander Ananenkov.

Concluding his speech, A. Ananenkov emphasized that timely meeting all challenges under the Eastern Gas Program with an aggregate macroeconomic effect estimated at above RUB 27.8 trln would give a new impetus to the qualitative development of the whole Russia’s East.

During the Baikal Economic Forum Gazprom’s delegation will participate in holding a number of round tables that will address issues surrounding comprehensive exploitation of hydrocarbon resources and pipeline system development in eastern Russia.

Background:

The Baikal Economic Forum has been held in Irkutsk since 2000. The Forum organizers are the Federation Council of the Russian Federation, Irkutsk Oblast Administration, Economic Development Ministry of the Russian Federation, Regional Development Ministry of the Russian Federation.

The Forum is being attended by representatives of the Russian federal authorities, regional and local heads, leaders of public organizations, associations, movements, unions of industrialists and entrepreneurs, business circles as well as by scientists, specialists and public persons from Russia and other countries.

The main goal of the Forum is to assist in implementing the development strategy for Russia’s eastern regions.

The 5th Baikal Economic Forum will take place on September 8-11.

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Government as the Program execution coordinator.