The Gazprom Headquarters hosted a working meeting between Alexander Ananenkov, Acting Chairman of the Gazprom Management Committee and Lee Byung-Ho, Acting President-Director General of KOGAS.

The parties discussed issues of bilateral cooperation in the gas sector. Special attention was paid to the progress in the implementation of the Intergovernmental Agreement of Cooperation in the gas industry between the Government of the Russian Federation and the Government of the Republic of Korea within the project for the arrangement of natural gas supplies from Russia to the Republic of Korea.

Background:

On October 17, 2006, Seoul saw the signing of the Agreement of Cooperation in the gas industry between the Government of the Russian Federation and the Government of the Republic of Korea, pursuant to which Gazprom and KOGAS were identified as authorized companies overseeing natural gas deliveries 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 was entered into on May 12, 2003. In May 2008, the Agreement was extended for the next five-year term.

The September 3, 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 Federation Government as the Program execution coordinator.

The Sakhalin – Khabarovsk – Vladivostok gas transmission system is a top priority project of the Eastern Gas Program.