The sixth meeting of the Russia-Korea Energy and Natural resources Cooperation Committee was held in Cheju (the Republic of Korea) on 13-14 July, 2005. Anatoly Yanovsky, Director, Fuel and Energy Industry Department, the Russian Federation Ministry of Industry and Energy, led the delegation of the Russian Federation.

Gazprom’s delegation led by Sergey Balashov, First Deputy Head, Foreign Relations Department, took part in the Intergovernmental Commission meeting.

The Committee reviewed the 2005-2006 Russia - Korea cooperation perspectives in the energy industry.

The meeting’s participants discussed the issues of natural gas supplies to the Republic of Korea within the framework of Gazprom’s Program on setting up an integrated gas production, transmission and supply network in Eastern Siberia and the Far East.

The parties considered issues related to the preparation of Russia-Korea Gas Industry Intergovernmental Cooperation Agreement.

The final protocol was signed at the conclusion of the Russia-Korea Committee meeting. The protocol specially underlines the importance of energy cooperation between the Russian Federation and the Republic of Korea.

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The Republic of Korea’s own natural gas reserves are limited. Currently the Korean gas market almost totally depends on LNG imports. At the same time, the Korean natural gas market is characterized by a developed gas transmission network which connects onshore terminals with the main gas consuming centers, and natural gas is used in electric power generation as well as in the industrial and utilities sectors.

The Republic of Korea holds the 10th place in the world in terms of energy consumption. It is the 6th and the 4th largest oil consumer and importer respectively, and the 2nd biggest LNG importer.

Gazprom and Kogas (Korea Gas Corporation) signed the five year Cooperation Agreement on May 12, 2003. The parties established a permanent joint working group to supervise the Agreement’s implementation.

Kogas was incorporated in 1983. The state owns a 62% stake in the company. The company is involved in construction and operation of LNG receiving terminals and gas transmission networks, overseas projects, R&D in the natural gas industry. It owns three LNG receiving terminals and operates a 2442 km gas transmission network.

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