The Gazprom Headquarters hosted a working meeting between Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Ahn Chol-Sik, First Deputy Minister of Knowledge Economy of the Republic of Korea.

The parties discussed development prospects for cooperation between Gazprom and Korea Gas Corporation KOGAS in the natural gas sector. In particular, the meeting considered the arrangement of Russian natural gas deliveries to the Republic of Korea from the vicinity of Vladivostok and the implementation of the Agreement of Cooperation in the Gas Industry signed between the Russian Federation Government and the Government of the Republic of Korea.

Background:

On October 17, 2006, an Agreement of Cooperation in the Gas Industry was signed between the Government of the Russian Federation and the Government of the Republic of Korea in Seoul. Pursuant to the Agreement Gazprom and KOGAS were authorized to deal with the issues related to natural gas supply from Russia to the Republic of Korea. Presently, Gazprom and KOGAS are in the relevant commercial talks.

The Agreement of Cooperation between Gazprom and KOGAS had been entered into on May 12, 2003.

The September 3, 2007 Order by the Russian Federation Ministry of Industry and Energy 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). Among the basic principles of the Program are, inter alia, prioritized meeting of the Russian consumers’ demand for gas and development of advanced gas processing and gas chemicals plants in Russia. Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

The Sakhalin – Khabarovsk – Vladivostok gas transmission system is a top priority project of the Eastern Gas Program. The decision to establish and develop the system was adopted by the Gazprom Board of Directors on April 27, 2006.