Gazprom Global LNG and Sovcomflot signed a long-term lease agreement today (for the period of no less than 15 years) for two new ice class LNG carriers with cargo capacity of some 170 thousand cubic meters as part of the St. Petersburg International Economic Forum 2011, in the presence of Sergey Naryshkin, Chief of Staff of the Presidential Executive Office and Alexey Miller, Chairman of the Gazprom Management Committee.

The arctic design of Sovcomflot's Atlanticmax LNG carriers is the most up-to-date among its peers. It considers the contemporary energy efficiency criteria and environmental requirements as well as ship crew labor conditions, rest and occupational safety requirements.

The vessels leased by Sovcomflot can be used for cargo transportation between any of the existing LNG terminals including year round LNG shipping from the Sakhalin II and Shtokman projects.

“Expanding participation of Sovcomflot in LNG transportation is among the priorities of our company's development strategy. We offered Gazprom Global LNG a competitive solution that would contribute to implementation of Gazprom's plans on developing the global LNG marketing.

The document signed today develops the partnership relations of Sovcomflot and Gazprom being a result of a Cooperation Agreement on marine transportation of the Shtokman field LNG signed last June. Further on, we are ready to offer solutions to our partners that guarantee high efficiency, reliability and environmental safety of marine transportation,” said Sergey Frank, Director General of Sovcomflot.

“It is a particular pleasure for us to develop long-term relations with Sovcomflot – a leading Russian company and one of the world's leading tanker operators. Partnership with Sovcomflot will not only provide Gazprom Global LNG with high quality and competitive oversea LNG transportation services but will also contribute to a number of strategic tasks on the domestic shipbuilding development and training highly skilled Russian specialists in the field of LNG transportation,” said Nikolai Grigoryev, Director of Global Shipping and Logistics of Gazprom Global LNG at the agreement signing ceremony.

Background

Being a part of Gazprom Group, Gazprom Global LNG Ltd. is engaged in LNG marketing and marine transportation. Headquartered in London the company actively develops its commercial activity globally, including Asia with its branch in Singapore – Gazprom Marketing & Trading Singapore (Pte.) Limited. Gazprom Global LNG is among the most active regional LNG traders and freighters.

Gazprom Global LNG is in charge of the global LNG strategy implementation by Gazprom through increasing the mid- and long-term LNG supply contract portfolio, entering new markets (including those with no access to pipeline gas), introducing new products and services, developing business contacts with new suppliers and clients.

Sovcomflot Group is one of the world's leading shipping companies focused on oil products and LNG transportation. The fleet comprises 156 vessels with the total deadweight of some 11.8 million tons. The company is registered in St. Petersburg with representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, London, Limassol, Madrid and Singapore.

A wide range of vessels, and strong groups in the segments most desired by Russian petroleum majors, own engineering developments and a unique set of the cutting-edge technologies for a shipping company allow Sovcomflot meeting the highest requirements of the customers offering them reliable and efficient transport support.

In June 2010 Gazprom and Sovcomflot signed the Cooperation Agreement on marine transportation of the Shtokman field liquefied natural gas (LNG).

The document envisages interaction of the companies in developing the LNG transportation logistic schemes, determining the appropriate specifications for gas carriers and configuring the fleet required for the Shtokman project implementation.