Gazprom LNG Production and Supply Strategy to be Updated

April 24, 2013

The Gazprom Board of Directors took notice of the information about the progress with preparing proposals on updating the Gazprom LNG Production and Supply Strategy.

Background

In March 2008 the Gazprom LNG Production and Supply Strategy was approved. In October 2012 the Board of Directors made a decision to update the document.

During the last five years Gazprom has significantly strengthened its positions in LNG production and marketing.

Gazprom owns a 50 per cent stake plus one share in the Sakhalin II project. The nominal capacity of the LNG plant equals 9.55 million tons per year, but in 2012 the plant produced 10.9 million tons of LNG.

In addition, Gazprom Marketing and Trading (Gazprom Group's subsidiary) successfully fulfills the task of selling Russian LNG abroad as well as marketing liquefied natural gas from third countries.

At the same time, Gazprom aims at the accelerated implementation of new LNG projects to preserve or boost the Company's share in the global gas market.

In February 2013 Gazprom adopted the final investment decision on the Vladivostok-LNG project. In March 2013 the Action Plan on constructing the LNG plant was approved together with the Plan for establishing the project's resource base.

Besides, Gazprom is looking into the possibility of expanding the Sakhalin II project as well as implementing the Shtokman LNG project.

Gazprom will also boost small-scale LNG production in Russia.

SOURCE: Gazprom Press Office.