Gazprom’s Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Masaharu Kono, Ambassador Extraordinary and Plenipotentiary of Japan to he Russian Federation.

The parties positively evaluated the results of cooperation between Gazprom and Japanese companies within the Sakhalin II project and discussed the cooperation deepening prospects in the oil and gas sector.

Special emphasis was put on the possible expansion of cooperation within the Eastern Gas Program including gas chemistry and gas processing projects in Russia as well as LNG production near Vladivostok. In this context, the parties stressed the importance of the Memorandum of Understanding between Gazprom, Japan’s Natural Resources and Energy Agency, Itochu Corporation and Japex signed in May.

The meeting paid special attention to the Sakhalin – Khabarovsk – Vladivostok gas pipeline project which provides the technical capability for extra gas supplies to Asia-Pacific including Japan.

The parties also discussed the areas of possible cooperation between Gazprom and Japanese companies within the Shtokman and the Yamal LNG projects.

Background:

With scarce domestic energy resources, Japan is the world’s fourth-largest country in terms of energy consumption. The country annually consumes some 80 billion cubic meters of gas, the share of which totals nowadays 14 per cent in the national energy basket and is to be further increased. Japan imports 100 per cent of overall gas consumed in the form of LNG and is the world’s top LNG importer.

Gazprom and the Natural Resources and Energy Agency under the Economy, Trade and Industry Ministry of Japan signed the Framework Agreement of Cooperation in 2005.

On May 12, 2009 Gazprom, the Natural Resources and Energy Agency under the Economy, Trade and Industry Ministry of Japan, Itochu Corporation and Japan Petroleum Exploration Company (Japex) signed the Memorandum of Understanding. The Memorandum stipulates a joint investigation of natural gas utilization opportunities around Vladivostok: the follow-up transportation, marketing and/or processing and marketing of the final products to potential customers in Asia-Pacific including Japan.

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 identified by the Russian Government as the Program execution coordinator.

The Sakhalin – Khabarovsk – Vladivostok gas transmission system with its first start-up complex planned for commissioning in the third quarter of 2011 is a top priority project of the Eastern Gas Program.