The Gazprom headquarters hosted a working meeting between Alexander Ananenkov, Deputy Chairman of the Company's Management Committee and Yoshio Matsukawa, President and CEO of Japan Far East Gas Co., Ltd (Japan).

The parties signed the Agreement on the joint feasibility study for deployment of a gas liquefaction plant (LNG plant) and a gas chemical complex near Vladivostok.

The document also envisages investigation of the opportunities for executing a pilot project on natural gas compression near Vladivostok for further marine transportation.

“The feasibility study will make an important contribution in building up natural gas deliveries from Russia to Asia-Pacific countries by Gazprom in future as well as in reliable energy supply to Japan,” said Alexander Ananenkov summarizing the meeting results.

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.

The Agreement between Gazprom and Japan Far East Gas Co., Ltd is signed in furtherance of the Cooperation Agreement between Gazprom and the Japanese Agency for Natural Resources and Energy under Japan's Ministry of Economy, Trade and Industry, envisaging 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 among potential customers in Asia-Pacific countries.

Gazprom and the Japanese Agency for Natural Resources and Energy entered into the five-year Framework Agreement of Cooperation on November 21, 2005. In January 2011 the Agreement was extended for another five years. The Agreement sets forth the key areas of bilateral cooperation in the gas sector. A Joint Coordinating Committee (JCC) was established for the Agreement implementation. A Joint Working Group was set up within the Committee.

A consortium of five Japanese companies (ITOCHU, JAPEX, MARUBENI, INPEX, CIECO) called Japan Far East Gas Co., Ltd was established with the assistance of the Japanese Agency for Natural Resources and Energy. The consortium participants are to perform the feasibility study on behalf of the Japanese party.