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Dow Jones Newswires: Gazprom’s Medvedev: 07 Export Revenue To Total $38.1 Billion

June 26, 2007: 04:50 AM EST

MOSCOW (Dow Jones)–Russian gas monopoly OAO Gazprom (GSPBEX.RS) expects export revenue to total $38.1 billion in 2007, the head of the company’s export arm Alexander Medvedev said Tuesday.

Export revenue last year stood at $37.2 billion.

Medvedev told a press conference dedicated to the company’s Asia Pacific strategy that it had two strategic priorities: to service the needs of the domestic market in Russia’s far east, which so far has little or no gas infrastructure, and to increase the volume of its exports, especially of liquified natural gas.

Gazprom became controlling shareholder last year in Sakhalin Energy, operator of the world’s largest LNG project, off Russia’s east coast.

Medvedev told the briefing he would like the associated gas from the Sakhalin- 1 project, also located on Sakhalin Island and operated by Exxon Mobil Corp. ( XOM), to be incorporated into this strategy.

“It can’t be right to divert all the gas to the export market,” Medvedev said.

The Exxon-led Sakhalin-1 consortium aims to produce around 8 billion cubic meters a year of gas and export it by pipeline to Japan. “I struggle to see how a pipeline with 8 bcm a year can be economic,” Medvedev said, adding that “we can offer conditions that would help them reduce the risks associated with the project.

Gazprom took control of Sakhalin Energy from Royal Dutch Shell PLC. (RDSB), which had come under attack by Russian authorities over alleged environmental infringements.

Separately, Medvedev said Gazprom’s CEO Alexei Miller would return to work soon, having been absent since early June due to illness.

“Alexei Miller will return to work in the nearest future…he is already managing the company’s activities in all respects,” Medvedev said.

Company Web site:

-By Geoffrey T. Smith and Andrew Langley, Dow Jones Newswires; +7 495 974 80 55;

[email protected]

  (END) Dow Jones Newswires
  06-26-07 0450ET
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