A meeting between Mr. Alexey Miller, Gazprom’s Management Committee Chairman, and Mr. OH Kang-Hyun, President of Korean gas corporation Kogas, was hold yesterday at Gazprom’s headquarters.

The parties stressed the significance of developing business relations between the companies. It was mentioned that in summer this year the parties determined core areas of cooperation and set up a Joint Working Group.

Mr. Miller and Mr. OH Kang-Hyun discussed the possibility of joint participation in implementing gas projects in Eastern Siberia and the Far East; the parties also considered the most promising routes of Russian gas export (including LNG) to the Asia Pacific countries.

The parties agreed to discuss in the nearest future, within the frames of the Joint Working Group, the concrete directions of the cooperation in the following fields: gas marketing; implementation of oil and gas projects in Russia, Korea and third countries; sci-tech cooperation; collaboration in personnel training.

“We attach great significance to forging relations with the Republic of Korea. Gazprom and Kogas have the potential sufficient enough for creating all necessary conditions for full-sized, long-term and mutually beneficial cooperation”, - stressed Gazprom’s Management Committee Chairman Alexey Miller in conclusion.

Reference:

The agreement on cooperation between Gazprom and Korean Gas Corporation Kogas was signed on June 12, 2003. Under the agreement, Gazprom and Kogas are studying the possibility of Russian gas deliveries to the Republic of Korea and implementation of joint projects in third countries. The parties to the agreement also intend to implement joint projects in the gas production and transmission sectors, and to develop and implement financial and investment programs for successful joint implementation of gas projects.

Korea’s own gas reserves are very limited; for the time being, domestic gas fields are not developed.

At the same time, natural gas consumption in Korea in 2002 reached 21.9 bcm. Gas consumption in Korea is expected to grow 1.5-fold by 2010 and to double by 2020.

At present, Korean gas market fully depends on LNG import. The country has a highly developed gas transmission network connecting its onshore LNG terminals with major consumption centers. That’s why not only power producers, but also the industry and citizens are among the biggest gas consumers.

Korean Gas Corporation Kogas was established in 1983. The state holds 62% of the company shares. Core businesses of the company: construction and operation of LNG terminals and gas distribution systems; implementation of gas projects abroad; researches for the gas industry. The company owns 3 LNG terminals and a 2,442-km-long gas pipeline network.

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