GAZPROM IN EASTERN , ENTRY INTO ASIA-PACIFIC MARKETS

Moscow, June 8, 2017 ’s Resource Base in Eastern and Russian Far East (bln m3, as of January 1, 2017) Gas reserves in Gazprom Group’s licensed blocks: 3 + 1+ 1 – 4.23 trln m 3 2+ 2 – 1.69 trln m

Kamchatka (onshore + offshore) 12.1 0.9 Krasnoyarsk Territory Republic of 203.6 97.3 464.8 1,621.4 1,459.5 , 2,995

offshore Sakhalin Island Gazprom’s licenses Irkutsk Region 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 Irkutsk Region 5 48.2 Krasnoyarsk Territory 15 Region 2 A+B1+C1 B2+C2 D (resources) TOTAL 35 2 Kirinskoye Field Development Project

Planned gas production: 5.5 bln m3 per year Projected number of development wells: 7 units 5 development wells built

SUBSEA PRODUCTION 2 wells currently in operation ONSHORE PROCESSING SYSTEM FACILITY Production drilling performed by Gazprom-owned semi-submersible 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 m3 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 m3 of gas

Planned gas production from Chayandinskoye field: 25 bln m3 per year

Planned gas production from Kovyktinskoye field: 25 bln m3 per year

5 Sakhalin – – 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

Belogorskaya area is located near Amur GPP. At present, 3D seismic surveys are being conducted. Planned exploration activities will be completed after Angarskaya area is located near 2020. Irkutsk. Possible creation of caverns is being studied

Blagoveshchenskaya area is located near . Two stages of 3D seismic surveys are finished. It is planned to drill two prospecting and appraisal wells in 2017.

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 container ships • Road transportation to logistic hub located near container Japan ports • Delivery of containers to buyers in ports • Main sales markets: , Japan, South Korea, Taiwan, and other countries • Planned delivery volume: up to 60 mln m3 per year

8 Sakhalin II Project

2016 results: • Gas production: 17.45 bln m3 • LNG production: 10.93 mln t • Liquid hydrocarbon production: 5.51 mln t

9 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 PIPELINE GAS SUPPLIES LNG SUPPLIES SCI-TECH COOPERATION PRODUCTION 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 supplies from ▪ The Agreement on design and construction of Power of Russia’s Far Siberia’s cross-border section, including a crossing under the East Amur River, was signed in December 2015; 30 bln m3 38 bln m3 Eastern route ▪ The EPC contract to construct a crossing under the Amur 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.

India Project for natural gas ▪ Gazprom and CNPC inked in September 2015 the supplies from Russia’s Memorandum of Understanding for the project of pipeline - Gas pipeline under construction gas supplies to China from Russia’s Far East. - Potential supply routes Far East

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 supply markets Gazprom Group’s LNG business in 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 3,6 3,7 Japan – 45% ▪ Annual capacity: up to 5.4 mln t of LNG 3,4 6 ▪ In 2015, Gazprom and Shell signed Third production Memorandum on said project train within Sakhalin II project 2,3 ▪ FEED for said project is under development 4 Taiwan – 15% South Korea 1,9 ▪ Scheduled for commissioning in 2023–2024 1,4 1,5 India – 13% 2 1,4

0,5 Argentina – 11% Japan 0,1 0,3 0,3 UAE – 4 % 0 Mexico – 4% China other DES supplies – 8% Taiwan 2011

2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 FOB supplies – 2% India Bangladesh Prospects for LNG demand in Asia-Pacific countries Vietnam Philippines - Japan - South Korea - China - India - Other Asia-Pacific countries* Thailand 4 83,5 33,7 27,2 20,4 27,6 Malaysia Singapore 3 76,4069 34,8289 46,7817 24,376344,8945

2 72,5192 35,6236 58,8888 29,0168 68,5085 Gazprom Group’s LNG supplies to Asia-Pacific countries from other Indonesia regions 1 71,881 37,4013 66,4327 40,0215 92,7826 LNG markets in LNG plants with Gazprom Routes for Gazprom Group’s LNG Group’s participation: mln0 t 88 175 263 350 Asia-Pacific: supplies: - existing - operational - existing * Taiwan, Bangladesh, Vietnam, Indonesia, Malaysia, Pakistan, Singapore, Thailand, Philippines - emerging - planned - planned Source: IHS Markit

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