Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company’s delegation visited the Primorsky Krai to inspect the construction facilities in the southern block of the first start-up complex, a part of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS).

Alexander Ananenkov held a meeting in Vladivostok attended by managers and experts from Gazprom, Mezhregiongaz, Gazprom promgaz, Giprogaztsentr and their contracting companies.

The meeting participants discussed the issues of constructing a gas lateral from the Sakhalin – Khabarovsk – Vladivostok gas trunkline to the gas distribution station in Vladivostok. A focus was also placed on the prospects for constructing gas distribution networks in Vladivostok from the gas distribution station to the Russkiy Island that would host the 2012 APEC Summit.

Based on the meeting results, the assignments were given aimed at timely execution of these projects.

Alexander Ananenkov also held working meetings with heads of the Primorsky Krai’s regions, where the Sakhalin – Khabarovsk – Vladivostok GTS would be constructed.

Background:

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.

Pursuant to the Program it is projected to construct new gas production centers in Eastern Russia: Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin.

The Program stipulates the prioritized construction and development of the Sakhalin – Khabarovsk – Vladivostok GTS to be connected in future with the gas pipeline from the Republic of Sakha (Yakutia). The Sakhalin – Khabarovsk – Vladivostok GTS is being constructed according to the assignment by the Russian Federation Government and the decision of the Gazprom Board of Directors.

The first start-up complex of the Sakhalin – Khabarovsk – Vladivostok GTS will be brought onstream in the third quarter of 2011. It shall ensure gas supply to Vladivostok and generation capacities commissioning in the Primorsky Krai by the 2012 APEC Summit.

In 2009 it is projected to construct a 300-kilometer-long section of the gas transmission system.