Today the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of Gazprom Management Committee and Lee Soo Ho, CEO of the Korea Gas Corporation Kogas.

The parties examined the long-term cooperation prospects within the execution of the Intergovernmental Agreement in the gas industry. Particularly, special attention was paid to the discussion of issues related to further cooperation in the LNG supply sector and organization of Russian pipeline gas export to Korea. The parties also discussed the prospects of cooperation in the gas exploration, production and marketing sector in third countries.

Alexey Miller and Lee Soo Ho pointed out that the meeting was successfully held and made a decision to organize exclusive presentation of the Eastern Program approved by the Ministry of Industry and Energy of the Russian Federation for Kogas. Further joint actions will be performed following the Program.

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At present Korean gas market almost completely depends on LNG import. The peculiar element of the Korean gas market is an occurrence of advanced internal gas transmission networks connecting onshore LNG terminals with the main gas consumption centers in Korea enabling to use natural gas not only for power generation but also in industrial and municipal sectors of the economy.

Kogas was established in 1983. The government owns 62 per cent of the Company’s shares. Mainly, Kogas is involved in construction and operation of LNG terminals and gas distribution networks, implementation of international gas projects, research and technical development. The Company operates three LNG terminals.

The Intergovernmental Agreement of cooperation in the gas sector signed on October 17, 2006, appoints Gazprom and KOGAS to be authorized organizations to implement the Agreement on Russian gas deliveries to the Republic of Korea.

In October 2006 Gazprom Marketing and Trading Ltd. (GMT) (Gazprom Group subsidiary) firstly supplied LNG to Korea. LNG was supplied to Pyeongtaek gasification terminal owned by Kogas Korean Gas Company in amount of 145 thousand cu m (nearly 92 mcm of natural gas). In January 2007 Gazprom Marketing and Trading Ltd. secondly supplied LNG to Incheon regasification terminal in amount of 147 thousand cu m.

On September 3, 2007 the Ministry of Industry and Energy of the Russian Federation approved the Program for the Unified Gas Production, Transportation, Supply System Development in Eastern Siberia and Far East due to possible gas export to Chinese markets and other Asia Pacific countries (Eastern Program). Gazprom was appointed to coordinate the Program execution.

The Program’s priority principle is a Russian consumer, the necessity to primarily satisfy gas need of the Russian market and gas processing capacities development in Russia.