Meeting on gas supply to Far East regions held

Alexander Ananenkov, Deputy Chairman of the Management Committee has convened at the Gazprom Headquarters a meeting dedicated to the execution of 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).

Attendance for the meeting consisted of Yaroslav Golko, Member of the Gazprom Management Committee, Head of the Investment & Construction Department, heads and experts of the Gazprom Administration core business units and subsidiaries including Mezhregiongaz, Gazprom invest Vostok, Gazflot, Gazprom export and scientific and design institutes of Gazprom.

In his opening speech Alexander Ananenkov underlined that Gazprom was facing the crucial national task of coordinating the Eastern Gas Program execution and implementing investment projects in eastern Russia. Among them are, first of all, the Gas Supply to the Kamchatka Oblast, Phase 1. Gas Supply to Petropavlovsk-Kamchatsky project and the Sakhalin – Khabarovsk – Vladivostok gas pipeline system development project as well as gas supply to the Sakhalin Oblast, Khabarovsk, Primorsky Krais and Jewish Autonomous District.

The meeting attendees discussed a set of organizational arrangements needed for the projects to be executed on schedule.

Based on the meeting results the Company core business units and subsidiaries were engaged with the appropriate tasks.

The meeting also addressed the issue of natural gas deliveries from Russia to Asia-Pacific countries including the Republic of Korea.

Background

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 Eastern Gas Program prioritizes, inter alia, constructing and developing the Sakhalin – Khabarovsk – Vladivostok gas pipeline system to be connected with a pipeline from the Republic of Sakha (Yakutia) and implemented across a considerable stretch of the route within an integrated corridor with the ESPO oil pipeline system.

In April 2006 the Board of Directors adopted a decision to create and develop the Sakhalin – Khabarovsk – Vladivostok gas pipeline system. The Sakhalin I project is the only source of gas supply to the Sakhalin Oblast, Khabarovsk and Primorsky Krais and Jewish Autonomous District in the mid-term. At present, Gazprom under the aegis of Russia’s Industry & Energy Ministry and the Sakhalin I project consortium are in the commercial talks with regard to Sakhalin I gas purchases.

Gazprom signed Memoranda of Understanding with the Plenipotentiary Envoy of the Russian Federation President to the Far Eastern Federal District as well as the Agreements of Cooperation and Gasification Accords with the Primorsky and Khabarovsk Krais and Sakhalin Oblast, the Agreement of Cooperation with the Republic of Sakha (Yakutia). On December 24, 2007, Gasification Accords were signed with the Jewish Autonomous District and the Kamchatka Krai.

The main provisions of the General Gas Supply and Gasification Scheme for the Far East have been elaborated.

In conformity with the assignments of Russian President V. V. Putin (based on the outcomes of the meeting dedicated to the Kamchatka Krai socioeconomic development) and Russian Prime Minister V. A. Zubkov, Gazprom is entering the Gas Supply to the Kamchatka Oblast, Phase 1. Gas Supply to the Petropavlovsk-Kamchatsky project. The gas pipeline was requested to be completed in 2010.

Under the instructions of the Russian Government, the Sakhalin – Khabarovsk – Vladivostok gas pipeline system commissioning and gas supply to the Primorsky Krai are due in 2011.

Information Directorate, OAO Gazprom

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