Seoulhosted today a working meeting between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Young Sung Park, Executive Vice President of the Korea Gas Corporation (Kogas).

The parties discussed the terms of Russian natural gas supply to the Republic of Korea via the Democratic People's Republic of Korea.

The delegations of Gazprom and Kogas submitted updated proposals on the major terms and conditions of the contract, and conciliated their approaches to a number of crucial issues.

Summing up the meeting results, the parties confirmed their interest in the project and highlighted the importance of reaching an agreement as soon as possible to secure efficient Russian gas supplies to South Korea.

In addition, the parties resolved to intensify the negotiations and to hold the next meeting in March 2012.

Background

On October 17, 2006 the Government of the Russian Federation and the Government of the Republic of Korea signed the Agreement of Cooperation in the Gas Industry identifying Gazprom and Kogas as the companies authorized for overseeing natural gas deliveries from Russia to the Republic of Korea.

On September 29, 2008 Gazprom and Kogas signed the Memorandum of Understanding on natural gas supplies from Russia to Korea.

On June 23, 2009 as part of the working visit by Gazprom's delegation to the Republic of Korea, Alexey Miller, Chairman of the Company's Management Committee and Choo Kangsoo, President – CEO of Kogas signed the Agreement to jointly explore the natural gas supplies project. In pursuance of the Agreement, a final report was issued in 2010. The report studied options for natural gas supplies from the terminal point of the Sakhalin – Khabarovsk – Vladivostok gas transmission system to Korea.

On September 15, 2011 Gazprom and Kogas inked the Roadmap on natural gas supplies from the Russian Federation to the Republic of Korea. The Roadmap is a plan of top-priority actions needed for the project implementation.