Gazexport and Gasum extended Gas Supply Contract
Alexander Medvedev, Gazprom’s Management Committee Member and Gazexport’s Director General and Antero Jannes, Gasum’s CEO entered in Moscow into an Agreement to extend the Prime Contract for Russian natural gas exports to Finland through 31 December 2025. The Agreement also emphasizes the substantial increase (by over 15%) in gas shipments to Finland, with a 6 bcm/y level to be reached by 2008. Said Document was signed within the September 2004 Memorandum on further cooperation between Gazprom and Gasum.
The new Agreement brings the terms and conditions of Russian gas exports in line with the energy sales regulations being applied on the European market, in general, and the Finnish market, in particular.
The parties adopted a resolution to set up a joint working group to be responsible for scrutinizing the terms and conditions of additional natural gas sales in the vicinity of Turku (western Finland).
The first up to 1.4 bcm/y Contract on natural gas deliveries from the URSS to Finland dates back to 1971, with physical shipments launched in 1974. Over the 30-year period, Finland had received a total of 75 bcm of Russian natural gas. In 2004, Russian gas supplies to the country accounted for 4.95 bcm, with 5.2 bcm slated for 2005.
Over the first 25 years of business relationship, Gazprom had established close and strong ties with the Finnish firm Neste re-incorporated after its merger with Imatran Voima into the Fortum Concern. The bilateral cooperation between Gazprom and Fortum led to the foundation in 1994 of the Gasum joint venture taking on itself gas imports and marketing as well as gas transmission network operation and development in Finland. At present, Gasum’s authorized capital is divided in the following way: Gazprom (25%), Fortum (31%), the Finnish State (24%) and E.ON Ruhrgas AG (20%).
In 1994, upon successful fulfillment of the first 20-year Contract commitments, the parties entered into a new through 31 December 2014 Agreement recently extended until year-end 2025.
In September 2004, Helsinki hosted celebrations dedicated to the 30- and 10-year anniversaries of Russian gas shipments to Finland and Gasum, respectively.
Division of relations with mass media
Public relations division od Gazexport
Press service of Gasum