Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company's experts started their business trip to the Far East.

The experts of the Company visited the gas supply and gasification facilities under construction in Vladivostok. A briefing was held on the spot.

Hydraulic testing has already been finished at the gas distribution station (GDS) – a key gas supply facility of the regional center. Startup operations are currently underway there.

An inter-settlement gas pipeline construction is being completed from the GDS to the Russky Island with its 2012 APEC Summit venues as well as construction of a lateral to CHPP-2 in Vladivostok.

The main string at the gas pipeline's most complicated section – the Eastern Bosphorus Strait submerged crossing – is nearly constructed. A directional drilling method is used to construct the crossing. Extremely harsh geological environment (rocks), significant length (2.8 kilometers) and a considerable tunnel diameter (762 millimeters) make this crossing unparalleled in Russia and a unique facility of the domestic gas industry.

Alexander Ananenkov held a briefing at the main compressor station (the Sakhalin gas compressor station) of the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

Hydraulic testing of the gas communications is being performed at the gas compressor station. All the equipment has been mounted and lubricating oil circulation over the two gas pumping units has been completed. The units are being prepared to receive gas and for a test run. Gas intake units are almost mounted within the Sakhalin II and Sakhalin I projects.

Based on the meeting results, specific tasks were given to ensure timely commissioning of the facilities intended to supply an eco-friendly fuel (natural gas) to Vladivostok as well as heat to the 2012 APEC Summit venues.

Background

Gazprom's expert groups take regular trips to the Far East. A group is made up of top managers from the Company, its specialized subdivisions, subsidiaries and contracting agencies. The trips are primarily aimed at monitoring the execution of the projects on shaping the Unified Gas Supply System in Eastern Russia on the basis of the Company's resource base.

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 (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

The Eastern Gas Program gives priority to the creation and development of the Sakhalin – Khabarovsk – Vladivostok gas transmission system. Launched in July 2009, the GTS construction is targeted at developing gas supplies to the Khabarovsk Krai and the Sakhalin Oblast as well as arranging gas deliveries to the Primorsky Krai. The 1,350-kilometer first startup complex of the gas pipeline with the annual capacity of 6 billion cubic meters is to be brought onstream in the third quarter of 2011.

The total design length of the gas pipeline from the GDS in Vladivostok to the Russky Island with a lateral to CHPP-2 in Vladivostok is some 34 kilometers: more than 15 kilometers on the mainland, some 12 kilometers on the Russky Island and more than 6 kilometers (two strings: main and backup) under the Eastern Bosphorus Strait.