Negotiations were held today at the Company’s headquarters between Leonid Chugunov, Head of the Gazprom Project Management Department and Liviu Pintican, Deputy Director General of Transgaz S.A., also attended by experts from both companies.

During the negotiations the parties reached agreements to render by the end of November 2010 the feasibility study conclusion for constructing the Romanian section of the South Stream gas pipeline. Provided that the conclusion is positive, the companies will bring forward a proposal to the Russian and Romanian governments on signing the intergovernmental agreement that will serve as a political and international legal framework for the South Stream project implementation in Romania.

Background:

Natural gas has been delivered from Russia to Romania since 1979. In  2009 Gazprom supplied the country with 2.5 billion cubic meters of gas. Russian gas is exported to Romania under two long-term contracts effective until 2030.

Romania transits natural gas to Bulgaria, Macedonia, Turkey and Greece. In 2009 natural gas transit to these countries amounted to 12.5 billion cubic meters.

Set up in 2000, state-owned Transgaz S.A. operates the national gas transmission system of Romania. The company is responsible for arranging transmission and international transit of natural gas as well as for dispatch control of gas deliveries.

On October 13, 2010 Gazprom and Transgaz S.A. signed the Memorandum of Intent to prepare a feasibility study for South Stream in Romania.