The Gazprom headquarters hosted today a working meeting between Alexander Medvedev, Deputy Chairman of the Company's Management Committee and Martin Zeil, Bavarian Deputy Prime Minister and State Minister for Economic Affairs, Infrastructure, Transport and Technology.

The parties discussed the current issues of cooperation in the energy sector paying special attention to the projects within the Roadmap for cooperation in power generation and gas supply.

The meeting also addressed the prospects for improving the investment attractiveness of the gas-fired power generation and energy security in Bavaria and Germany. A capacity payment mechanism was considered as one of the possible options. The mechanism stipulates collection of extra payments by power stations for the use of their generating capacities.

In addition, the parties discussed the prospects for natural gas use as a motor fuel.

Based on the meeting results, Alexander Medvedev and Martin Zeil confirmed their interest in cooperation development as well as the readiness to hold a new round of negotiations in the coming months to discuss implementation of projects in the gas-fired power generation and natural gas vehicles sectors in Bavaria.

Background

In December 2011 Gazprom and the Bavarian State Government signed the Roadmap for cooperation in power generation and gas supply. The document sets out the parties' intention to make joint efforts in Bavaria.

In February 2012 a roundtable discussion took place involving Gazprom, Bavaria's top executives and representatives of large power producers, consumers and system operators.

Bavariais the largest of 16 German Federal States. It has the highest economic and scientific potential, and shows the best economic growth. Machine building, electrical engineering, power generation and chemical sectors are Bavaria's most developed industries.