Gazprom's group of experts led by Alexander Ananenkov, Deputy Chairman of the Company's Management Committee continues its business trip to the Far East. The purpose of the trip is to monitor gas supply and gasification facilities construction in eastern regions.

On the Sakhalin Island the experts inspected the construction site for the Sakhalin main compressor station (MCS) at the Sakhalin – Khabarovsk – Vladivostok gas transmission system. A high pace of MCS construction was appreciated during the working meeting held here. The main equipment is currently being installed in parallel with the compressor station engineering systems and infrastructure facilities. It is planned to start hydraulic testing of the MCS this May.

Gazprom's experts examined the readiness of the Dalneye gas distribution station, an inter-settlement gas pipeline and a gas distribution point. Construction and assembly operations at these facilities have been finished and they are ready for gas supply. Being the main consumer, CHPP-1 in Yuzhno-Sakhalinsk is ready to start up and to receive gas.

In addition, a working meeting was held between the Gazprom experts and the Sakhalin Oblast authorities. The meeting was devoted to regional gasification issues within the elaborated five-year program. In particular, the parties considered major production issues related to synchronization of the gasification facilities construction and consumers preparation for gas supply.

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 securing timely execution of the projects for 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.