A meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Masanori Toyoshima, Executive Officer and Chief Operating Officer of Japan Far East Gas Co., Ltd. took place today as part of the St. Petersburg International Economic Forum 2013.

The parties discussed the bilateral cooperation in the gas sector.

The negotiations resulted in the signing of a Memorandum of Understanding on the Vladivostok-LNG project. The document sets the main principles of further joint activities under the project and reflects the arrangements with regard to the project products marketing in Japan.

“At the meeting our Japanese colleagues noted that gas demand in Japan was expected to keep growing, and we will build our plans based on this. We agreed that our specialists would work with potential customers. For this purpose a number of people being employed in Japan will be increased. In the short run we will arrange an on-the-spot visit to the Far East for potential customers, where they will have an opportunity to get acquainted with the construction site of the future plant, the operation of the gas transmission system and the resource base for the project,” said Alexey Miller.

Background

Gazprom aims to accelerate the implementation of new LNG projects so as to retain or boost the Company's share in the global gas market.

On January 11, 2011 Gazprom and the Agency for Natural Resources and Energy (ANRE) under the Japanese Ministry of Economy, Trade and Industry signed the Agreement of Cooperation envisaging the 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 to potential customers in Asia-Pacific. The Agreement also contains the details of the LNG plant construction near Vladivostok.

The consortium of Japanese companies – Japan Far East Gas Co., Ltd. (ITOCHU, JAPEX, MARUBENI, INPEX, CIECO) – was established with the assistance of the Japanese Agency for Natural Resources and Energy. The consortium members were selected by the Japanese feasibility study performers.

In 2011 Gazprom together with ANRE as well as Japan Far East Gas Company conducted a preliminary feasibility study on the LNG plant project near Vladivostok.

On June 24, 2012 the Russian Energy Ministry and the Japanese Ministry of Economy, Trade and Industry signed the Memorandum of Understanding confirming the intent of the countries' governments to provide the necessary assistance to the Vladivostok-LNG project.

On September 8, 2012 Gazprom and ANRE signed the Memorandum on the Vladivostok-LNG project. The document stipulates boosting the comprehensive cooperation in order to promote the project, including in the financing and gas marketing areas.

In March 2012 Gazprom adopted the decision to develop the Investment Rationale for the project. In February 2013 Gazprom took the final investment decision on the Vladivostok-LNG project. In March 2013 the Action Plan for constructing the LNG plant was approved together with the Plan for establishing the project's resource base.