Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee moderated a meeting in Sochi dedicated to the progress in the Dzhubga – Lazarevskoye – Sochi gas trunkline construction project.

Participating in the meeting were heads and specialists of core structural units of the Company’s Administration, Gazprom komplektatsiya, Gazprom transgaz Kuban, Mezhregiongaz, Piter gaz, PiterGazEngineering and their contractors.

The meeting participants discussed the issues related to the final stage of coordination and approval of the project and budget documentation for the Dzhubga – Lazarevskoye – Sochi gas pipeline. It was noted that the project had obtained positive findings of the State Environmental Expertise Committee and Glavgosekspertiza.

The meeting addressed the progress in preparation for the onshore section construction and the project implementation schedule, as well as took notice of the reports on arranging the materials and equipment procurement, terms and conditions for gas supply via the Dzhubga – Lazarevskoye – Sochi gas pipeline to ultimate consumers, in particular, Olympic and power generation facilities. Visits to the construction sites had confirmed a high degree of readiness to perform construction operations.

Based on the meeting results, the relevant structural units of Gazprom and its subsidiaries were assigned the respective tasks aimed at the project implementation.

Background:

Pursuant to the Russian Federation Government Directive No. 991 dated December 29, 2007 on the Program for the construction of Olympic facilities and development of Sochi as a mountain-climatic resort, the Dzhubga – Lazarevskoye – Sochi gas trunkline is included into the list of Olympic facilities.

The Dzhubga – Lazarevskoye – Sochi gas pipeline construction will ensure continuous and reliable gas supply to the Caucasian coastal resort area of the Black Sea and will additionally improve gas supply to Sochi – the host city of 2014 Winter Olympic Games. Natural gas utilization for heat and power generation will stimulate sustainable environmental situation in the region. The gas pipeline route length will make up 174 kilometers including over 150 kilometers laid on the Black Sea bed. Construction is to be accomplished in the second quarter of 2010.