Today the IV Far Eastern International Economic Forum has started in Khabarovsk under the motto “Development Strategy for Russian Far East: Anti-Crisis Guidelines and New Approaches”.

Gazprom’s delegation under the leadership of Alexander Ananenkov, Deputy Chairman of Gazprom Management Committee is taking part in the Forum.

Addressing the Forum participants, Alexander Ananenkov reported on Gazprom’s key guidelines in Eastern Russia.

The Far East is a strategically important region for Gazprom’s activities. In particular, it was emphasized that Gazprom’s activities in the Far East were oriented at prioritized meeting of Russian consumers’ demand, thus creating a favorable environment for sustainable economic growth.

So far, Gazprom is implementing the paramount projects of the Eastern Gas Program and continues raising investments in its eastern projects despite the global economic crisis. “This is reflected in Gazprom’s investment program, which stipulates allocation of RUB 67 billion in 2009 for the projects in Eastern Russia. In 2010 the amount of financing will reach RUB 100 billion,” stated Alexander Ananenkov.

In 2009 pursuant to the assignment by the Russian Federation Government, Gazprom has set to constructing the Sakhalin – Khabarovsk – Vladivostok gas transmission system, the project for gas supply to Kamchatka is progressing rapidly, geological exploration has been initiated offshore Sakhalin and preconstruction activities for gas chemical and helium facilities are underway in Yakutia. The first Russian LNG plant has been commissioned as part of the Sakhalin II project this year. The project development will depend on the geological exploration in the licensed areas.

Execution of Gazprom’s major infrastructure projects will additionally stimulate the growth of industrial and energy sectors in the region as well as population centers gasification. Alexander Ananenkov believes that Gazprom’s orders will make it possible to exploit the potential of the local contractors and create favorable conditions for upgrading the shipbuilding machine building industries, production of wellhead equipment and check valves, as well as engineering equipment. There will be a unique opportunity to arrange in the Far East the construction of LNG and CNG carriers, supply vessels, including in cooperation with foreign manufacturers.

Speaking of the high socio-economic importance of the Eastern Gas Program, Alexander Ananenkov proposed a wider usage of state support measures for eastern projects. They included streamlining the federal legislation, elaboration of the state program for rational utilization of helium, development of gas, heat and electric power pricing techniques with due regard to the Far Eastern characteristic features and acceptability for potential gas consumers and producers. In addition, it is necessary to provide state support to the companies wishing to manufacture state-of-the-art technological equipment for the oil and gas industry, as well as for transportation infrastructure creation.

Background:

The Far Eastern International Economic Forum is organized under the aegis of the State Duma of the Federal Assembly of the Russian Federation, the United Russia All-Russian political party with participation of the Far East and Transbaikalia interregional association for economic interaction of federal constituents, the Siberian Agreement interregional association for economic interaction and under the assistance of the Plenipotentiary Envoy of the Russian Federation President to the Far Eastern Federal District.

The Forum is dedicated to addressing the issues of socio-economic development of Siberian and Far Eastern regions amidst the economic crisis, improving the living conditions and fixing the labor force in Eastern Russia through the implementation of national projects and the Socio-Economic Strategy for Eastern Russia up to 2025.

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.

Execution of the Gas Supply to the Kamchatka Krai project will make it possible to supply gas to Petropavlovsk-Kamchatsky in late 2010.

The first start-up complex of the Sakhalin – Khabarovsk – Vladivostok gas transmission system will be brought onstream in the third quarter of 2011.

Development of the Yakutia gas production center stipulates for the first gas recovery from the Chayanda field in 2016. By that time the Yakutia – Khabarovsk – Vladivostok gas transmission system will be commissioned. Gazprom will start constructing the system upon completion of the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

Gazprom has signed agreements of cooperation and accords on gasification with the Kamchatka, Primorsky and Khabarovsk Krais, the Republic of Sakha (Yakutia), the Sakhalin Oblast and the Jewish Autonomous District.