GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, - PowerPoint PPT Presentation

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, June 8, 2017

Gazprom’s Resource Base in Eastern Siberia and Russian Far East (bln m 3 , as of January 1, 2017) Gas reserves in Gazprom Group’s licensed blocks: + 1 + 1 – 4.23 trln m 3 2 + 2 – 1.69 trln m 3 Kamchatka (onshore + offshore) 0.9 12.1 Republic of Sakha Krasnoyarsk Territory 203.6 97.3 464.8 1,621.4 1,459.5 , 2,995 offshore Sakhalin Island Irkutsk Region Gazprom’s licenses 549.8 Location Number 469 844.0 Sea of Okhotsk shelf 5 1,079.4 Kamchatka Territory 3 1,715.6 Republic of Sakha 5 48.2 Irkutsk Region 5 Krasnoyarsk Territory 15 A+B 1 +C 1 B 2 +C 2 D (resources) Amur Region 2 TOTAL 35 2

Kirinskoye Field Development Project Planned gas production: 5.5 bln m 3 per year Projected number of development wells: 7 units 5 development wells built 2 wells currently in operation SUBSEA PRODUCTION SYSTEM ONSHORE PROCESSING Production drilling performed by Gazprom-owned semi-submersible FACILITY floating drilling rigs (Polyarnaya Zvezda and Severnoye Siyaniye) Results in 2016: ― 2 development wells built and tested ― 2 development wells drilled into pay zone Plans for 2017: ― to complete construction of 2 development wells 3

Yuzhno-Kirinskoye Field Development Project Planned gas production: 21 bln m 3 per year Production drilling to be performed by Gazprom-owned semi-submersible floating drilling rigs (Polyarnaya Zvezda and Severnoye Siyaniye) Following activities implemented as planned in 2017: • selection of core process equipment supplier • preparation of design documentation for construction of development wells 4

Power of Siberia Gas Trunkline, 
 Chayandinskoye and Kovyktinskoye Fields Length of Power of Siberia gas pipeline: around 3,000 km 
 Diameter: 1,420 mm 
 Pressure: 9.8 MPa 
 Annual export capacity: 38 bln m 3 of gas Planned gas production from Chayandinskoye field: 25 bln m 3 per year Planned gas production from Kovyktinskoye field: 25 bln m 3 per year 5

Sakhalin – Khabarovsk – Vladivostok Gas Transmission System Length: over 1,800 km 
 Diameter: 1,200 mm 
 Pressure: 9.8 MPa 
 6

Geological Exploration to Identify Potential Sites for UGS Facilities in Eastern Russia present, 3D seismic surveys are being conducted. Belogorskaya area is located near Amur GPP. At Planned exploration activities will be completed after Irkutsk. Angarskaya area is located near 2020. studied Possible creation of caverns is being Blagoveshchenskaya area is located near Blagoveshchensk. Two stages of 3D seismic prospecting and appraisal wells in 2017. surveys are finished. It is planned to drill two 7

Planned Export Routes for Amur GPP Products Propane and butane Amur GPP • Delivery to Russia’s Far East in railway cars for LPG tanks transshipment via specialized terminal • LPG deliveries to buyers by refrigerated ships of VLGC class Svobodny settlement LPG terminal • Commodities to be sold to buyers on FOB or CFR terms • Main sales markets: Japan, South Korea, and other Asia- Pacific countries Helium trucks • Planned delivery volume: up to 1.5 mln t per year Helium hub Liquefied helium • Shipments in special helium tank containers Gas carriers and • Road transportation to logistic hub located near container container ships Japan ports • Delivery of containers to buyers in ports • Main sales markets: China, Japan, South Korea, Taiwan, and other countries • Planned delivery volume: up to 60 mln m 3 per year 8

Sakhalin II Project 2016 results: • Gas production: 17.45 bln m 3 • LNG production: 10.93 mln t • Liquid hydrocarbon production: 5.51 mln t 9

Natural Gas Deliveries to Chinese Market Pipeline gas supply to Chinese market is among Gazprom’s priorities in Asia. Between 2015 and 2017, considerable success was achieved in expanding strategic partnership with Chinese companies Existing and potential areas of cooperation with Chinese partners OFFSHORE GAS EXPLORATION AND UNDERGROUND GAS GAS-FIRED POWER NGV FUEL AND PRODUCTION LNG SUPPLIES PIPELINE GAS SUPPLIES SCI-TECH COOPERATION STORAGE GENERATION SMALL-SCALE LNG Key agreements signed between 2015 and 2017 to start Pipeline gas supply routes from Russia to China supplying natural gas from Russia to China Project for gas Western route Eastern route ▪ The Agreement on design and construction of Power of supplies from Siberia’s cross-border section, including a crossing under the Russia’s Far Amur River, was signed in December 2015; 30 bln m 3 38 bln m 3 East ▪ The EPC contract to construct a crossing under the Amur Eastern route River within the cross-border section of the Power of Siberia Mongolia gas pipeline was inked in September 2016. Beijing ▪ The Heads of Agreement for gas deliveries to China via the China Western route western route was signed by Gazprom and CNPC in May 2015. Shanghai Project for natural gas ▪ Gazprom and CNPC inked in September 2015 the India Memorandum of Understanding for the project of pipeline supplies from Russia’s - Gas pipeline under construction gas supplies to China from Russia’s Far East. Far East - Potential supply routes 10

Gazprom Group’s LNG Business in Asia-Pacific Region ▪ Asia-Pacific region remains important market for LNG supplies from Gazprom Group’s trading portfolio . ▪ LNG consumption in Asia-Pacific countries is expected to continue growing. ▪ Further increase in LNG supplies to Asia-Pacific countries (including by implementing Company’s LNG projects in region) is among Gazprom Group’s priorities. Gazprom Group’s LNG business in Gazprom Group’s LNG supply markets Asia-Pacific region mln t - DES, Asia-Pacific countries Project of LNG plant’s third production train, 8 - DES, other countries Sakhalin II Sakhalin II - FOB 3,7 Japan – 45% ▪ Annual capacity: up to 5.4 mln t of LNG 3,6 3,4 Third production 6 ▪ In 2015, Gazprom and Shell signed train within Memorandum on said project Sakhalin II project ▪ FEED for said project is under development 2,3 4 Taiwan – 15% South Korea ▪ Scheduled for commissioning in 2023–2024 1,9 1,5 1,4 India – 13% 1,4 2 Argentina – 11% Japan 0,5 0,3 0,3 0,1 UAE – 4 % Mexico – 4% 0 China other DES supplies – 8% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Taiwan FOB supplies – 2% India Bangladesh Prospects for LNG demand in Asia-Pacific countries Philippines Vietnam - Japan - South Korea - China - India - Other Asia-Pacific countries* Thailand Malaysia 4 83,5 33,7 27,2 20,4 27,6 Singapore 3 76,4069 34,8289 46,7817 24,3763 44,8945 Gazprom Group’s LNG supplies to 72,5192 35,6236 58,8888 29,0168 68,5085 2 Indonesia Asia-Pacific countries from other regions 71,881 37,4013 66,4327 40,0215 92,7826 1 LNG plants with Gazprom Routes for Gazprom Group’s LNG LNG markets in Group’s participation: supplies: Asia-Pacific: mln t 0 88 175 263 350 - existing - operational - existing * Taiwan, Bangladesh, Vietnam, Indonesia, Malaysia, Pakistan, Singapore, Thailand, Philippines - emerging - planned - planned Source: IHS Markit 11