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Energy Working Group Meeting
December 15-16, 2003

U.S.-Russia Energy Working Group

The U.S.-Russia Energy Working Group conducted its fourth official meeting on December 16, 2003 in Washington D.C. The Russian delegation also participated in a site visit to the Maryland Cove Point Liquefied Natural Gas Facility on December 15 and attended the Liquefied Natural Gas Summit on December 17-18, 2003.

Highlights follow from the Russian delegation site visit to Cove Point Liquefied Natural Gas Facility, Energy Working Group meeting, and LNG Summit.

Cove Point LNG Facility
The Cove Point site visit was an excellent opportunity for the Russian delegation to see what one element of the LNG chain of facilities looks like and what it takes to build and operate. It was an excellent overview. The Russian delegation enjoyed the visit to Cove Point and asked a number of questions about: the nature of the long-term contact Dominion established with its suppliers Statoil, BP, and Shell; profit figures for Cove Point, the role Cove Point plays in Dominion's overall activities; technical questions about tank constructions, upgrades, materials; among many others.

Energy Working Group (EWG) meeting
Please see attached protocols and agenda.

Three of the EWG's subgroups -- energy efficiency, oil markets, and information sharing -- met for informal discussions. The plenary session of the EWG was chaired by Vicky Bailey of PI and Leonid Tropko, First Deputy Minister of Energy of the Russian Federation. The plenary session heard reports of the work of the three subgroups that met earlier in the day and also a summary of the oil spill prevention and response workshop that took place in Moscow on December 4-5, 2003. Presentations also were made regarding LNG, electricity, and the international partnership for the Hydrogen Economy. The participants also discussed the report of the Commercial Energy Dialogue presented in September at the Commercial Energy Summit. Participants also agreed to work together on the Murmansk oil pipeline. At the conclusion of the meeting three agreements were signed: 1. the meeting protocol (English version) (Russian version); 2. an agreement with the Energy Information Administration on information sharing (English version) (Russian version); 3. an addendum to the oil spill protocol that also will be signed by Norway (English version) (Russian version).


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LNG Summit -- December 17-18, 2003
Deputy Minister Tropko addressed the summit during the Dec. 17 Opening Plenary.

  • Stressed that the energy sector is the linchpin of the Russian economy
    -- 28 percent of GDP; 61 percent of tax revenue; 54 percent of total export revenue


  • Russian Energy Strategy approved in August 2003 calls for energy security and affordability; efficiency improvements; a shift from raw materials to manufacturing; technology and science developments


  • Natural Gas: Gas accounts for 50 percent of Russia's energy consumption; gas powers 70 percent of electric power facilities


  • -- Russia plans to increase energy efficiency, thereby decreasing domestic energy consumption while simultaneously increasing gas production
    -- Gas liquefaction will help Russia achieve these goals, but Russia faces transportation limitations and another limitation of the obligation to deliver gas to remote areas to consumers paying subsidized prices
    -- LNG: Russia is moving in the right direction—it is exploring how to develop LNG and is looking to North American markets

    Alexander Ryzanov addressed the summit during the Dec. 18 Russia Country Presentation.
    He provided an overview of the company and a summary of the firms' interest in LNG and U.S. markets.

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