The Management Committee has addressed the major trends in the global gas market and related markets, such as power generation and gas chemistry.

The following key measures have been defined to expand Gazprom's presence in global markets:

• creating new corridors for pipeline gas export to Europe;
• establishing liquefied natural gas (LNG) facilities, inter alia, in the Far East, building up the LNG share in the export portfolio;
• arranging pipeline gas supplies to Asia-Pacific countries;
• launching small deliveries of LNG and compressed natural gas abroad;
• designing and implementing power generation projects in Europe.

The said issue will be submitted for consideration by the Gazprom Board of Directors.

Background

Over the decade of 2000–2010 the world's gas demand has grown by 31 per cent. Despite the global economic crisis in 2008 and 2009, the positive dynamics of demand revival was observed in the mid-2009 and, first of all, in Asian countries. In 2010 the global gas consumption amounted to 3.2 trillion cubic meters.

Due to its great size and geographic proximity, Europe remains a crucial strategic market for Gazprom Group. In 2010 natural gas consumption in non-FSU European countries reached its historical maximum of 611 billion cubic meters showing a 8.1 per cent rise versus 2009.

The Asian gas market is demonstrating today significant growth rates making it the most fast-growing gas market in the world. Over the last decade gas consumption in the region increased almost twofold and made up around 570 billion cubic meters in 2010.

LNG is a crucial facility providing access to new gas export markets and enabling to reinforce the Company's position in the existing markets. Gazprom Group sets the following objectives to build up the LNG share in Russian gas export:

• ensuring timely implementation of the Shtokman project;
• expanding gas liquefaction capacities on the Sakhalin Island;
• creating gas liquefaction capacities near Vladivostok;
• selection of promising LNG projects abroad for participation and/or acquisition of product marketing rights.

The fast emerging market of small LNG deliveries is attractive in terms of raising gas export from Russia. Gazprom is going to develop this sector in Europe.

Power generation business abroad including holding of assets, gas supply to gas-fired power generating facilities and power distribution is of great interest for Gazprom. At present, Gazprom is analyzing and defining promising power generation projects to be implemented in Europe.