Biggest foreign buyer of Russian gas

Natural gas has been exported to Germany since 1973. Verbundnetz Gas was the first company to receive supplies. Today, Germany is the biggest buyer of Russian gas in the world, while German companies implement numerous projects jointly with Gazprom Group.

Figures and facts

In 2015, Germany purchased a record high of 47.4 billion cubic meters of Russian gas.

Cooperation areas

At present, Germany is Gazprom’s largest export market. Gazprom cooperates with German companies along the entire value chain, from gas production in Russia to gas deliveries to end consumers in Germany. The cooperation also covers sports, social and cultural projects

Gas deliveries and transmission

Russia and Germany are connected by the largest gas transmission routes: Yamal – Europe and Nord Stream.

The transnational Yamal – Europe gas pipeline traverses four countries, namely Russia, Belarus, Poland, and Germany. Its annual capacity is 32.9 billion cubic meters of gas.

Route map of Yamal – Europe

Route map of Yamal – Europe

The Nord Stream gas pipeline is built across the Baltic Sea. The pipeline delivers Russian gas directly to Europe, bypassing any transit countries. Its annual capacity is 55 billion cubic meters of gas.

Route map of Nord Stream and Nord Stream 2

Route map of Nord Stream and Nord Stream 2

Gas production

Gazprom jointly with German companies implements a number of upstream projects. Among them are the extraction of natural gas from the Achimov deposits of the Urengoyskoye field by Achimgaz joint venture, the extraction of gas from the Wingate field in the North Sea, and the development of the Yuzhno-Russkoye oil and gas field (Yamal-Nenets Autonomous Area).

Gas facility at Yuzhno-Russkoye field

Gas facility at Yuzhno-Russkoye field

Equipment and technologies

German suppliers of equipment and technologies (from pipes to automation products) are regular participants in Gazprom’s projects.

End consumers in Europe

Gazprom and its affiliates own CNG stations in Germany. As of late 2015, Gazprom operated 35 natural gas filling stations across Germany. Together with Gasunie, Gazprom is engaged in the construction of a small-scale LNG terminal in the port of Rostock for receiving, storing, and shipping liquefied natural gas to be used as a bunker and vehicle fuel, as well as for autonomous gasification purposes. The Rostock terminal will be loaded with LNG from Gazprom’s planned LNG production capacities in northwestern Russia. In 2016, Gazprom Germania for the first time bunkered a ship with LNG at the port of Rostock.

Development

The cooperation between Gazprom and German companies is of strategic importance.

1969

May 22

In order to resolve the situation with the ban on supplies of large-diameter pipes from the Federal Republic of Germany, Soviet Foreign Minister Andrey Gromyko offers to West German authorities a new model of economic cooperation: gas deliveries in exchange for pipes and equipment.

1970

February 1

The USSR and West Germany conclude a deal of the century: ‘gas for pipes’, singing a number of agreements, inter alia, for supplying 3 billion cubic meters of natural gas per year from the USSR to West Germany and delivering large-diameter pipes from Germany to the Soviet Union.

1972

Prior to the beginning of gas deliveries from the USSR to West Germany, the parties sign an agreement to increase gas supplies. Similar agreements are also inked in 1974 and 1979.

1973

May 1

The USSR starts delivering natural gas to the German Democratic Republic under the Intergovernmental Agreement signed in 1968. The first company to receive gas is Verbundnetz Gas.

October 1

The USSR starts delivering natural gas to the Federal Republic of Germany. The buyer is Ruhrgas.

1974

June 21

The Orenburg Agreement is signed regarding the involvement of builders and gas industry workers from East Germany and other member countries of the Council for Mutual Economic Assistance in developing the Orenburgskoye field and constructing the Orenburg – USSR Western Border gas trunkline, subsequently named Soyuz.

1981

November 20

Soyuzgazexport (now Gazprom Export) and Ruhrgas sign another (fourth) contract to deliver additional 8 billion cubic meters of gas per year to West Germany between 1984 and 2008.

1986

January

The Agreement of Cooperation between the USSR and East Germany (one of the Yamburg Agreements signed with member countries of the Council for Mutual Economic Assistance between 1985 and 1987) in developing the Yamburgskoye field enters into force. Up to 1989, Verbundnetz Gas receives Russian gas in exchange for building facilities and delivering equipment and pipes from East Germany, particularly for the construction of the Yamburg – USSR Western Border gas trunkline.

1990

November 9

Gazprom and Wintershall establish the WIEH joint venture with the focus on natural gas trading, transmission, storage and marketing in various European countries.

1993

August

Gazprom and Wintershall complete the construction of STEGAL, the 313-kilometer gas pipeline running across Germany.

October

Gazprom and Wintershall complete the construction of MIDAL, the 702-kilometer gas pipeline running across Germany. The MIDAL-STEGAL system gives Gazprom direct access to Germany’s gas market.

Gazprom and Wintershall establish the WINGAS joint venture with the purpose of selling gas to German consumers and delivering gas to Belgium, France, the UK, Holland, Austria, the Czech Republic, and Denmark.

Gazprom signs a number of long-term contracts with WINGAS and WIEH on gas supplies to European consumers.

Gazprom and Siemens intensify their cooperation in telecommunications and process automation.

1997

June

Moscow holds the Catherine the Great art exhibition organized by Gazprom jointly with Wintershall.

1998

October 15

Gazprom and Wintershall put onstream WEDAL, the 236-kilometer gas pipeline running across Germany. The trunkline connects the gas transmission system of WINGAS to Belgium’s gas pipeline network and then to the Interconnector gas pipeline running from continental Europe to the UK across the North Sea.

Compressor station in Mallnow (Lebus), north of Frankfurt an der Oder

Compressor station in Mallnow (Lebus), north of Frankfurt an der Oder

The environmental project of Gazprom and Ruhrgas aimed at reducing carbon emissions at Russian gas transmission facilities receives the award of the Federation of German Industries.

December

Gazprom and Ruhrgas sign the Agreement on the extension of most contracts until 2020 and the participation of Ruhrgas in Gazprom’s shareholders equity.

1999

February

Moscow and Kassel hold the Russian Paintings of the Biedermeier Period exhibition organized by Gazprom and Wintershall.

August 24

WINGAS makes Rehden, the largest underground gas storage facility (working capacity of 4.2 billion cubic meters) in Germany and Western Europe, fully operational.

Rehden underground gas storage facility

Rehden underground gas storage facility

August

Russia and Germany host the Hampelmann and Matryoshka – Wooden Toys from Germany and Russia exhibition organized by Gazprom and Wintershall.

November

Gazprom and Wintershall complete the construction of JAGAL, the 338-kilometer gas pipeline running across Germany. JAGAL connects the Yamal – Europe and STEGAL gas pipelines.

2000

April

Moscow and Kassel hold the Birth of Time exhibition organized by Gazprom and Wintershall.

Kassel hosts the Masterpieces of Russian and German Art Photography at the Turn of the 19th and 20th Centuries exhibition organized by Gazprom and Wintershall.

2001

Gazprom and E.ON Gastransport sign a long-term Agreement to transmit natural gas through Germany to the Netherlands and Belgium, as well as a number of short-term contracts.

February–June

Hamburg hosts the With all the Power. Russian Avant-Garde. The Years 1910 to 1934 art exhibition organized by Gazprom and Wintershall.

September 6

Ruhrgas acts as the exclusive sponsor of the Amber Room restoration in Tsarskoye Selo, completed in May 2003 in the lead-up to the 300th anniversary of St. Petersburg.

2002

September 26

The State Historical Museum of Russia (Moscow) holds the Court Hunting exhibition organized by Gazprom and Wintershall.

2003

January 21

Berlin holds the exhibition of works made by Russian children – winners of the Warm House festival. The display marking the 10th anniversary of Gazprom is arranged with the assistance of Verbundnetz Gas.

February

Berlin hosts the Russian-German cultural meetings with the support of Gazprom and Ruhrgas.

July 17

Gazprom and Wintershall set up the Achimgaz joint venture to explore the first pilot block of the hard-to-reach Achimov deposits at the Urengoyskoye field.

Achimov deposits of Urengoyskoye field

Achimov deposits of Urengoyskoye field

Gazprom and WINGAS sign the long-term Agreement to sell natural gas to the UK until 2028.

2004

October

Leipzig hosts a presentation of The Masterpieces of Russian Art. Golden Map of Russia album with the assistance of Gazprom, Verbundnetz Gas, the State Tretyakov Gallery, and the Leipzig Museum of Fine Arts. A part of the album’s edition in the German language is subsequently transferred to Saxony’s museums, educational institutions, and libraries.

2005

May 18

Gazprom, RAG, and WINGAS sign the Contract to construct Austria-based Haidach, the second-largest underground gas storage facility (working capacity of 2.8 billion cubic meters) in Central Europe.

Haidach underground gas storage facility. Photo by RAG

Haidach underground gas storage facility. Photo by RAG

May

Gazprom and Verbundnetz Gas act as the official sponsors of the Rachmaninov Trio, a participant of the Berlin classical music concert marking the 60th anniversary of Germany’s denazification and the end of the Great Patriotic War.

September 8

Gazprom, BASF/Wintershall, and E.ON sign the Agreement to construct the Nord Stream gas pipeline, a fundamentally new route of gas supplies from Russia to Europe across the Baltic Sea.

2006

April 3

Gazprom and E.ON Ruhrgas sign the Agreement on scientific & technical cooperation and personnel training and development.

April 27

Gazprom and BASF/Wintershall sign the Agreement to swap upstream and downstream assets. Pursuant to the document, Gazprom increases its share in the WINGAS joint venture from 35 per cent to almost 50 per cent in October 2007. BASF/Wintershall obtains 25 per cent minus one share in Severneftegazprom engaged in the development of the Yuzhno-Russkoye field. It is the first project implemented jointly with a foreign partner for creating a value chain from production to end consumers.

August 29

The four major contracts for gas supplies between Gazprom and E.ON Ruhrgas are extended until 2035.

October 10

Gazprom becomes the title sponsor of the German football club Schalke 04. Since then the team has been twice Vice Champion of German Bundesliga and won the German Cup. Besides, Schalke 04 and FC Zenit sponsored by Gazprom enter into a partnership agreement of cooperation.

2007

December 18

The Yuzhno-Russkoye field is commissioned.

Gas facility at Yuzhno-Russkoye field

Gas facility at Yuzhno-Russkoye field

2008

July 15

The first block of the hard-to-reach Achimov deposits (Urengoyskoye field) is brought into test production. Drawing on the experience with Achimgaz, Gazprom introduces a new “benchmark” concept of cooperation with international partners in Russia-based upstream projects: profit from the project is received by a joint venture, while the field license is owned by the Russian company.

Achimov deposits of Urengoyskoye field

Achimov deposits of Urengoyskoye field

October 2

Gazprom and E.ON sign the Asset Swap Agreement. Pursuant to the Agreement, a year later E.ON joins Gazprom’s Yuzhno-Russkoye oil and gas field project and Gazprom obtains full control in Gerosgaz owning 2.93 per cent of Gazprom’s shares.

2009

May 19

Gazprom and Verbundnetz Gas establish a consortium to construct the Katharina underground gas storage facility in Germany.

2010

April 9

The construction of the Nord Stream gas pipeline starts. Wintershall and E.ON Ruhrgas hold 15.5 per cent each in Nord Stream AG, the pipeline operator.

2011

May 19

The Haidach underground gas storage facility is built to completion.

Haidach underground gas storage facility. Photo by RAG

Haidach underground gas storage facility. Photo by RAG

September

The construction of the Katharina underground gas storage facility starts in Germany.

November 8

The first string of the Nord Stream gas pipeline commences commercial gas deliveries.

December 19

Gazprom and Siemens sign the Agreement on strategic partnership stipulating further development and strengthening of cooperation between the companies in the Russian and international markets.

Gazprom and Wintershall complete the restoration of the Chinese Palace in the lead-up to the 300th anniversary of the palace ensemble in Oranienbaum (Peterhof).

2012

September

Organized by Gazprom and E.ON Ruhrgas, the Blue Corridor-2012 international rally of gas-powered vehicles runs through Moscow, Minsk, Warsaw, Prague, Paris, Brussels, Essen, and Berlin.

October 8

The second string of the Nord Stream gas pipeline is commissioned. It boosts the annual capacity of the gas pipeline to 55 billion cubic meters. The Nord Stream AG shareholders resolve that the construction of the third and the fourth strings is economically and technically feasible.

November 14

Gazprom and Wintershall sign the legally binding Basic Agreement to swap assets from Blocks 4A and 5A in the Achimov deposits of the Urengoyskoye field for Gazprom’s participation in a number of upstream and downstream assets of the German partner.

2013

January 9

Gazprom and Verbundnetz Gas sign the Agreement on scientific and technical cooperation until 2030.

April 8

Gazprom becomes an exclusive supplier of natural gas to Volkswagen Motorsport team participating in a unique gas-powered car racing series.

December 23

Gazprom and Wintershall sign the Master Agreement regarding an asset swap, pursuant to which Gazprom increases its share in WINGAS, WIEH and WIEE, the joint ventures focused on gas sales and storage across Europe, to 100 per cent and obtains a 50 per cent stake in WINZ, the company involved in hydrocarbon exploration and production in the North Sea.

Wintershall, in its turn, gains 25.01 per cent in Blocks 4A and 5A of the Achimov deposits in the Urengoyskoye oil, gas and condensate field.

2015

Gazprom, BASF, Uniper, ENGIE, OMV, and Shell decide to construct the Nord Stream 2 gas pipeline with the capacity of 55 cubic meters running from Russia to Germany across the Baltic Sea. The new pipeline will substantially enhance the reliability of gas supplies to European consumers for decades to come.

2016

March

Gazprom Germania for the first time bunkered a ship with LNG at the port of Rostock.

Baltic Sea, Rostock port. Photo by Rostock port.

Baltic Sea, Rostock port. Photo by Rostock port.