A working meeting took place today at the Gazprom headquarters between Alexey Miller, Chairman of the Company’s Management Committee and Lev Kuznetsov, Governor of the Krasnoyarsk Krai.

The parties summed up the Cooperation Agreement implementation results and considered issues related to the preparation of a new Agreement for signing. The parties appreciated the progress in the activities aimed at developing Gazprom’s resource base in the region and underscored that the integration of efforts made by the Company and local authorities was crucial for successfully performing these activities as a prerequisite for full-scale gas supplies to regional consumers.

Alexey Miller and Lev Kuznetsov explored possibilities of constructing gas chemical and gas processing facilities in the region, as well as pondered on Gazprom’s potential involvement in developing the national Siberian Federal University project.

Background:

The September 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. Gazprom was appointed by the Russian Government as the Program execution coordinator.

Pursuant to the Program, one of eastern Russia’s gas production centers will be established in the Krasnoyarsk Krai.

Gazprom and the Krasnoyarsk Krai Administration Board entered into the Agreement of Cooperation in February 2005 and into the Accord on Gasification in July 2007. In January 2010 the General Gas Supply and Gasification Scheme was signed with the regional authorities.

Gazprom Group has two companies operating in the Krasnoyarsk Krai: Gazprom dobycha Krasnoyarsk (Gazprom’s wholly owned subsidiary) and Krasnoyarskgazprom (Gazprom’s 75 per cent subsidiary). The companies perform their activities at 18 licensed areas in the region and hold subsurface use licenses for six fields.

Between 2005 and 2009 Gazprom invested a total of RUB 20.5 billion in geological exploration in the Krasnoyarsk Krai. Another RUB 9.6 billion is slated for the same purposes in 2010.

Liquefied natural gas penetration in the Krasnoyarsk Krai accounts for 16.5 per cent including 26 per cent in cities and towns and 10 per cent in the rural area. Natural gas is currently supplied only to the Norilsk industrial area. The residential sector doesn’t receive natural gas.