The Gazprom Headquarters has hosted a meeting dedicated to execution of the Company’s projects in the Far East.

The meeting was moderated by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee. Present at the meeting were the Deputy Chairmen of the Gazprom Management Committee including Valery Golubev, Angrey Kruglov, Alexander Medvedev as well as heads of the Gazprom core business units, Gazprom invest Vostok, Giprospetsgaz and Mezhregiongaz.

The participants discussed issues related to organizing the practical work aimed at implementing the Gazprom Management Committee’s November 15, 2007 Decision to supply gas to the Far East.

Particularly, the meeting discussed the development of the Sakhalin-Khabarovsk-Vladivostok gas transportation system enabling to raise regional energy supply stability and standard of living as well as to improve the environmental situation. The meeting particularly underscored that the Sakhalin I project was the only source to supply gas to the Primorsky and Khabarovsky Krais, Sakhalin Oblast, Jewish Autonomous Okrug in a mid-term perspective. The meeting considered it expedient to set up Mezhregiongaz gas supply service in the Far East.

The participants specified that the Gazprom’s participation in the gas pipeline construction project from the Sobolevsky Region to Petropavlovsk-Kamchatsk was the most relevant project for Gazprom in Russia’s East. The meeting underscored its importance for social and economic development of Kamchatka. The parties outlined concrete steps towards execution of said project.

The meeting also examined progress with the Sakhalin II project and issues related to Gazprom resource base development in the Far East.

“The development of the Integrated Gas Supply System in the Far East was marked to become an important part of the joint activities of both the Government and business furthering the social and economic development in the region. The execution of the gas supply projects of Kamchatka, Primorsky and Khabarovsky Krais, Sakhalin Oblast, Jewish Autonomous Okrug, development of the relevant gas production and transportation facilities, development of gas market are the top-priority issues for Gazprom in the Far Eastern Federal District,” said Alexander Ananenkov.

Reference:

The September 3, 2007 Order of the Russian Federation Industry and Energy Ministry approved the Development Program of the unified gas production, transportation and supply system with due regard of possible export to Chinese and Asia-Pacific markets (Eastern Program). The Russian Government tasked Gazprom to coordinate the execution of the Program.

A basic principle of the Program is to primarily satisfy gas needs on the Russian market. The gas pricing should be based on the market principles due to the energy competition.

The Federal Task-Oriented Program on Economic and Social Development of the Far East and Zabaikaliye until 2010 proceeds from the need to advance the regional economy growth rate in relation to the Russian average rates. This will foster growth of the forecasting demand for natural gas in the region.

The major provisions of the General Scheme of gas supply and gasification of the Far Eastern Federal District were developed.

Pursuant to the instructions of Vladimir Putin, Russian Federation President, following the results of the meeting dedicated to the social and economic development of the Kamchatka Krai as well as the meeting chaired by Viktor Zubkov, Prime Minister of the Russian Federation resulted in Gazprom entering the gas pipeline construction project from the Sobolevsky Region to Petropavlovsk-Kamchatsk. The gas pipeline construction is planned to end up in 2010.

On April 27, 2006 the Gazprom Board of Directors decided to consider the development a resource base in the Sakhalin and the Sakhalin-Khabarovsk-Vladivostok gas transportation system as an important issue for the Company’s in the Far East.

Gazprom invest Vostok was established by the Board of Directors Decision in 2007 in order to execute Gazprom investment projects in Russia’s East.