On April 5, 2007, within the implementation of an Agreement of cooperation between Gazprom and Korea Gas Corporation (KOGAS) the Republic of Korea has hosted the 5th regular meeting of the Joint Working Group between Gazprom and KOGAS.

The meeting was moderated by the Co-Chairmen of the Joint Working Group – Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Lee Byung-Ho, Senior Executive Vice President of KOGAS.

The parties underlined the importance of the Intergovernmental Agreement of cooperation in the gas sector between the Russian Federation and Korean authorities signed in October 2006, which created necessary conditions for Russian gas export to Korea.

The meeting discussed issues relevant to organization of gas deliveries to the Republic of Korea as well as expressed an interest to develop cooperation in the gas chemical and processing production and marketing sector in Russia.

Additionally, the parties examined issues in relation to the preparation and advanced management training as well as sci-tech cooperation development.

The meeting resulted in signing a Protocol and Program of sci-tech cooperation.

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At present, the Republic of Korea is almost fully dependent on LNG imports. The South Korean gas market is featured by a manifold gas transmission network linking onshore LNG terminals with major consumption provinces, which helps widely use natural gas both in the power generation and industrial & household sectors.

On May 12, 2003, Gazprom and Korea Gas Corporation (KOGAS) entered into the five-year Agreement for cooperation. The Agreement covers a broad spectrum of issues including potential deliveries of Russian natural gas to the Republic of Korea.

To implement the Agreement, the parties have set up a standing Joint Working Group that had its last meeting in December 2005 in Seoul.

Founded in 1983, KOGAS is a 62 per cent state-run company. KOGAS’ major business lines are construction and operation of LNG import terminals and gas distribution stations, implementation of international gas projects and research for the gas industry. The company owns three LNG import terminals.