E.ON and Gazprom deepen strategic cooperation and sign Memorandum of Understanding
E.ON AG and Gazprom signed a Memorandum of Understanding fixing mutual agreements on further deepening of successful cooperation in the area of strategic projects.
The parties intend to implement joint projects on gas production and power generation in Russia as well as gas supplies to and development of natural gas and electricity marketing infrastructure in Europe.
For these purposes, Gazprom and E.ON plan to use appropriate shareholdings and assets in third party businesses, thus, benefiting from their standing on the energy and gas markets.
Joint construction of the North-European gas pipeline is being regarded upon as a prerequisite to provide Europe with secure natural gas deliveries. Thus, Gazprom intends to diversify its gas transmission routes and develop gas export capacities. Joint working groups will shortly start elaborating certain projects.
By signing the Memorandum of Understanding, E.ON underscored its interest in promoting the company's involvement in Russia's energy sector. The projects planned to be implemented in Russia aim at enhancing E.ON's capitalization in the gas business and power generation sectors and are in line with E.ON's integrated business model.
Gazprom, in its turn, is following the selected strategy suggesting the Company's involvement in all sectors of the vertically integrated gas market, access to new markets and end-use consumers, business expansion outside Russia, participation in mutually advantageous long-term alliances and intensive integration into global energy markets.
“The accord achieved with Gazprom is a strategically crucial event for both of the companies. Our agreements will spur deepening of our well-reputed and trustworthy cooperation. Simultaneously, E.ON obtains good opportunities to enter the Russian market and for the 1st time in history to directly access Russia's gas production sector. The financing scheme devised for the above-mentioned activities will allow us to implement our strategy in Russia and to thriftily spend our resources”, – stated Dr. Wulf H. Bernotat, Chairman of the Board of Management and CEO of E.ON AG.
“E.ON and Ruhrgas have been our long-standing and reliable partners. The Documents signed today open a qualititavely new phase in our cooperation. In addition to the traditional gas supply business, we'll jointly implement projects in the gas production, transmission, marketing and power generation sectors. Thus, Gazprom is consecutively solidifying its standing as a global energy company”, – maintained Alexey Miller, Gazprom's Management Committee Chairman.
Information Directorate, OAO Gazprom