The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Eizo Kobayashi, President of Itochu Corporation.

The parties discussed the development directions for the mutually beneficial cooperation. In particular, the meeting analyzed the progress with the research activity required for the perspective project on an LNG plant construction near Vladivostok.

During the meeting the parties also discussed the possible participation of the Japanese company in gas chemical facilities construction in Russia, including the East of the country. It was noted that at the moment Gazprom neftekhim Salavat and Itochu were engaged in exploratory work on organizing a complex based on the pyrolysis plant in Bashkiria.

As Alexey Miller noted, “Summing up the meeting results, I can definitely say that cooperation between Russia and Japan will reach a new qualitative level.”

Background

On January 11, 2011 Gazprom and the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry signed the Agreement of Cooperation envisaging preparation of a joint feasibility study on the options for natural gas utilization near Vladivostok as well as for natural gas and gas chemicals transportation from the Vladivostok region and their sales among potential customers in Asia-Pacific countries.

A consortium of Japanese companies (ITOCHU, JAPEX, MARUBENI, INPEX, CIECO) called Japan Far East Gas Co., Ltd was established with the assistance of the Japanese Agency for Natural Resources and Energy. The consortium participants were defined by the Japanese party to be engaged in the study preparation.

In April 2011 pursuant to the above mentioned document Gazprom and Japan Far East Gas Co., Ltd signed the Agreement on the joint feasibility study for deployment of a gas liquefaction plant and a gas chemical complex near Vladivostok.

At the moment, Gazprom neftekhim Salavat is implementing the project on construction of the pyrolysis plant with the total ethylene output of 1 million tons per year and the ethylene/propylene consuming facilities. These facilities will become the basis for the National Gas Chemistry Center.