In the frames of the Asia Pacific Economic Cooperation Forum Alexander Medvedev, Deputy Chairman of Gazprom Management Committee met with Lee Soo Ho, CEO of the Korea Gas Corporation Kogas.

Within the meeting the parties discussed the progress with and prospects of cooperation between Gazprom and Kogas in executing the Intergovernmental Agreement of cooperation in the gas industry. Special attention was paid to organization of issues related to LNG and pipeline gas supply from Russia to Korea.

Alexander Medvedev and Lee Soo Ho examined major aspects of mutual cooperation within the hydrocarbon production projects in third countries.

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At present Korean gas market almost completely depends on LNG import. The peculiar element of the Korean gas market is an occurrence of advanced internal gas transmission networks connecting onshore LNG terminals with the main gas consumption centers in Korea enabling to use natural gas not only for power generation but also in industrial and municipal sectors of the economy.

Kogas was established in 1983. The government owns 62 per cent of the Company’s shares. Mainly, Kogas is involved in construction and operation of LNG terminals and gas distribution networks, implementation of international gas projects, research and technical development. The Company operates three LNG terminals.

The Intergovernmental Agreement of cooperation in the gas sector signed on October 17, 2006, appoints Gazprom and KOGAS to be authorized organizations to implement the Agreement on Russian gas deliveries to the Republic of Korea.

In October 2006 Gazprom Marketing and Trading Ltd. (GMT) (Gazprom Group subsidiary) firstly supplied LNG to Korea. LNG was supplied to Pyeongtaek gasification terminal owned by Kogas Korean Gas Company in amount of 145 thousand cu m (nearly 92 mcm of natural gas).