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

The meeting participants discussed cooperation between the two companies as part of the Sakhalin II project and stressed that additional LNG supplies by Sakhalin Energy (the Sakhalin II project operator) and LNG deliveries from the Company's own portfolio contributed considerably to restoring sustainable energy supply to Japan and strengthening regional energy security.

Following the results of the meeting Alexey Miller noted, “Based upon the projects implemented so far the Japanese party realized that Gazprom is a reliable partner. Thus, the Sakhalin II project has become a symbol of successful cooperation between Russia and Japan in the energy sector. Apparently, the Japanese market will demonstrate the demand for considerable amount of additional Russian natural gas. Gazprom is ready to develop wide and mutually beneficial cooperation with Japan fully meeting the additional demand for gas.”

Background

With its scarce domestic energy resources, Japan is the world's fourth largest energy consumer. 100 per cent of consumed gas is imported in the form of LNG, making Japan the world's top LNG importer.

On April 18, 2007 Gazprom and the shareholders of Sakhalin Energy (Royal Dutch Shell plc, Mitsui & Co. Ltd and Mitsubishi Corporation) signed the Purchase and Sale Agreement. Under the Agreement Gazprom acquired a stake of 50 per cent plus one share in Sakhalin Energy.

Diamond Gas Sakhalin B.V. (Mitsubishi Corporation subsidiary) holds a 10 per cent stake in Sakhalin Energy.

As part of the Sakhalin II project, Russia's first LNG plant was commissioned in early 2009 paving the way for Russian LNG exports to foreign consumers. In 2010 the plant reached the design capacity of 9.6 million tons per annum.

The bulk of LNG (over 60 per cent) is supplied to Japan. The Sakhalin gas is also transported to South Korea, India, Kuwait, China and Taiwan.

After reaching its full capacity the Sakhalin II project will ensure around 5 per cent of the global LNG production.