GAZPROM IN EASTERN RUSSIA,

ENTRY INTO ASIA-PACIFIC MARKETS

St. Petersburg, May 28, 2019

1

Gazprom’s Resource Base in Eastern Siberia and Russian Far East

(as of January 1, 2019), bln m3

Gazprom’s licenses in Eastern Siberia

and Russian Far East

Location Number

Sea of Okhotsk shelf 4

Kamchatka Territory 9

Republic of Sakha (Yakutia) 5

Irkutsk Region 5 (incl. for one UGS

facility)

Krasnoyarsk Territory 13

Amur Region 2 (for UGS facilities)

TOTAL 38

205,8

Krasnoyarsk Territory

1,715.3

443 1,079.4

Irkutsk Region

Republic of Sakha (Yakutia)

397.8

1,392.7

406 7.3

0.5

Kamchatka Territory

(onshore+offshore)

Sea of Okhotsk

shelf

940.2

50.6 110

Gas reserves in Gazprom Group’s licensed blocks in Eastern Siberia and Russian Far East:

А+В1+С1 – 4,260 bln m3; В2+С2 – over 1,638.4 bln m3

А+В1+С1 В2+С2 D (resources)

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

113.8 205.8

486

2

Key Production Data for Chayandinskoye and Kovyktinskoye Fields

RESERVES

1,2 TRLN M3 OF GAS

61.6 MLN T OF OIL AND CONDENSATE

2019 COMMISSIONING DATE

PLANNED GAS PRODUCTION

25.4 BLN M3 PER YEAR

CHAYANDINSKOYE OIL, GAS AND CONDENSATE FIELD

RESERVES

2.71 TRLN M3 OF GAS

90.6 MLN T OF CONDENSATE

DECEMBER 2022 COMMISSIONING DATE

PLANNED GAS PRODUCTION

25 BLN M3 PER YEAR

KOVYKTINSKOYE GAS AND CONDENSATE FIELD

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

1.5

6.9

13.8

19.0

23.6 25 25 25 25 25 25

0

5

10

15

20

25

2019 2020 2021 2022 2023 2024 2025 2030 2035 2040 2045

4.9

15

25 25 25 25 25 25 25

0

5

10

15

20

25

2023 2024 2025 2030 2035 2040 2045 2049 2050

GAS PRODUCTION SCHEDULE, BLN M3 GAS PRODUCTION SCHEDULE, BLN M3

3

Sakhalin III Project. Kirinskoye Field

75-90 м -

глубина моря

Field was put onstream in 2014

Planned gas production – 5.5 bln m3 per year

Construction of 7 production wells completed:

• 2 wells connected to gathering system

• 5 wells to be connected

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

4

Power of Siberia Gas Pipeline

Chayandinskoye and Kovyktinskoye Fields

LENGTH OF POWER OF SIBERIA

GAS PIPELINE IS AROUND 3,000 KM

DIAMETER – 1,420 MM

PRESSURE – 9.8 MPA

ANNUAL EXPORT CAPACITY

– 38 BLN M3 OF GAS

CHAYANDINSKOYE AND

KOVYKTINSKOYE FIELDS

IDENTIFIED AS RESOURCE BASE

FOR GAS SUPPLIES TO CHINA VIA

POWER OF SIBERIA GAS PIPELINE

CHAYANDINSKOYE FIELD IS OF

PRIME IMPORTANCE FOR YAKUTIA

GAS PRODUCTION CENTER’S

DEVELOPMENT

KOVYKTINSKOYE FIELD IS OF

CENTRAL IMPORTANCE FOR

IRKUTSK GAS PRODUCTION

CENTER’S DEVELOPMENT

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

5

Sakhalin – Khabarovsk – Vladivostok Gas Pipeline

Length of single-string pipeline – over 1,800 km

Diameter – 1,200 mm

Pressure – 9.8 MPa

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

6

Geological Exploration to Identify Potential Sites for UGS Facilities

Angarskaya area

Blagoveshchenskaya area

Belogorsky block

Block adjacent

to Khabarovsk

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

7

Planned Export Routes for Amur GPP Products

Propane and butane

• Planned LPG production at Amur GPP – up to 1.5 mln t per year

• Consideration is being given to possibilities for LPG processing within

Russia, as well as to LPG exports to Asia-Pacific countries (Japan,

China, South Korea)

• LPG will be transshipped at designated offshore and onshore terminals

if LPG export option is chosen

Liquefied helium

• Shipments in special helium tank containers

• Road transportation to logistics hub located near container 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 m3 per year

Svobodny settlement

Japan

LPG tanks

Amur GPP

Gas carriers and

container ships

LPG terminal

Helium trucks

Helium hub

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

8

0.1 0.3 0.3 0.5

1.4 1.9

2.3

1.4 1.5

3.4 3.6 3.7

3.3

4.0

0

1

2

3

4

5

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Gazprom Group’s LNG Business in Asia-Pacific Region

ASIA-PACIFIC REGION REMAINS

IN FOCUS FOR GAZPROM GROUP

In 2018, Asia-Pacific markets

accounted for over 70% of Gazprom

Group’s LNG deliveries.

We plan to further ramp up LNG

supplies to Asia-Pacific markets both

via our LNG projects carried out

locally and from our LNG trading

portfolio.

Gazprom Group’s LNG supply markets

LNG demand outlook in Asia-Pacific countries

Gazprom Group’s LNG business in Asia-Pacific region

73

77

83

83

42

38

39

44

97

80

65

55

43

27

26

23

129

90

49

37

0 100 200 300 400

2030

2025

2020

2018

mln t

mln

t

India - 19%

China - 15%

Japan – 16%

FOB - 11%

Taiwan - 10%

other DES supplies - 4%

Korea – 14%

Kuwait - 11%

Gazprom Group’s LNG

supplies from other locations

to Asia-Pacific region

Россия Sakhalin II project

third train of

LNG plant

Taiwan

Japan

Philippines

India

Китай

Singapore

Bangladesh

Thailand

South

Korea

Indonesia

- existing

LNG markets:

- potential

- existing

Gazprom Group’s

LNG supply routes:

- potential

- existing

- potential

LNG plants partly owned

by Gazprom Group:

Project of LNG plant’s third train,

Sakhalin II

Annual capacity – up to 5.4 mln t of LNG

In 2015, Gazprom and Shell signed

Memorandum on said project

Project’s FEED is complete, positive

feedback obtained from Russian State

Expertise Agency

Malaysia

Vietnam

- DES, Asia-Pacific countries

- DES, other countries

- FOB

Source: IHS Markit

- Japan - South Korea - China - India - other Asia-Pacific countries

Vladivostok LNG

(medium-scale)

Investment rationale

under development

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

9

Pipeline gas supplies from Russia to China via eastern route will

commence on December 1, 2019.

We are getting ready to start pipeline gas deliveries to China under Sales and Purchase

Agreement with CNPC for gas to be supplied via eastern route and also looking into other

promising areas of cooperation with Chinese partners.

Natural gas consumption and imports in Chinese market

PIPELINE GAS SUPPLIES LNG SUPPLIES UNDERGROUND GAS

STORAGE

GAS-FIRED POWER

GENERATION

SCI-TECH

COOPERATION

NGV FUEL AND SMALL-

SCALE LNG GAS EXPLORATION AND

PRODUCTION IN THIRD COUNTRIES

Current and potential areas of cooperation with Chinese partners

consumption*

including imports ** 169 179 193

206 237

280

31% 33% 32% 37% 40%

45%

0

50

100

150

200

250

300

2013 2014 2015 2016 2017 2018

bln

m3

0%

10%

20%

30%

40%

2013 2014 2015 2016 2017 2018

consumption

Growth rates:

production

imports

Sources: Chinese NDRC, NBS, GAC

Natural Gas Deliveries to Chinese Market

* Difference of gas consumption and gas imports corresponds to volume of domestic production added to volume of natural gas in storage,

volume of losses and statistical margin of error. Gas consumption data for 2018 are based on Chinese NDRC statistics concerning gas supplies

to China’s market (domestic production and imports).

** With reference to gas consumption-to-imports ratio.

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

10

Sakhalin II Project

GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS

Sakhalin II project includes development of Piltun-Astokhskoye and Lunskoye oil,

gas and condensate fields in Sea of Okhotsk under Production Sharing Agreement

between Sakhalin Energy and Russian Government

2018 results:

• Gas production – 18.2 bln m3

• LNG production – 11.4 mln t

• Oil production – 5.6 mln t

In April 2019, Sakhalin Energy celebrated its 25th anniversary.

Over years of its existence, SEIC has exhibited excellent operating performance:

• LNG production – over 100 mln t

• Oil production – around 70 mln t