Press Release 13 November 2007

MEDVEDEV: RUSSIAN GAS TO PLAY CENTRAL PART IN GROWING GLOBAL INDUSTRY

Rome 12 November 2007 - Alexander Medvedev, the deputy chairman of the management committee for Russia's Gazprom, told participants gathered at the World Energy Congress that Russian gas will be vital to help meet the future energy needs of Europe and Asia.

He said that during the last forty years, Russia has been a reliable supplier of gas to Europe - indeed Europe is Gazprom's biggest export market. And, looking to the future, Medvedev said that by 2015 Gazprom supplies will account for 33% of the European market.

"Our partnership with Europe is strong," he told the congress, adding that long-term contracts, struck with inter-government agreement, have been the key to the stable and reliable gas supply Europe has enjoyed for almost forty years.

Medvedev also stressed that Gazprom's sales to the Baltic and CIS regions grew by a third last year.

Taking the example of the Nord Stream pipeline that will, for the first time, directly connect Russia's gas transportation network with Europe's, Medvedev said: "This is an example of a real pan-European project in a turbulent environment."

Particularly, he added, as the EU's dependence on imports is growing as indigenous gas resources are depleted.

However, raising a controversial issue the Gazprom deputy said his company is "concerned" over European Commission proposals that would prevent gas pipelines within the EU being owned by the same companies which supply the gas.

Medvedev, who met with the EU Energy Commissioner Andris Piebalgs today for talks on the issue, said: "We are seeking clarification on this issue. At this stage I leave aside the question whether the forced disposal of assets which the Commission's proposals would require is compatible with the protection of private property in a market economy".

Outside Europe, Gazprom's development of new Liquified Natural Gas projects make it possible for the company to consider expanding supply to the Atlantic Basin and to North America, one of the world's largest markets.

"We are looking at the possibility of exchanging LNG for pipeline gas in the medium term, but in longer term we intend to export LNG from our own projects," Medvedev said.

These projects around the world show the extent to which Russia will play a central part in this growing industry.

Medvedev concluded by saying: "The prospects for the world gas market look good."

WEC Media contact:
Mathias Hocke: hocke@worldenergy.org
Tel: +44 (0) 20 7734 5996
Stephan Albrechtskirchinger: albrechtskirchinger@worldenergy.org
Tel: +44 (0) 20 7734 5996