Gazprom and E. ON prolong the existing contracts and sign contract for gas supply via the NEGP
Today, at Gazprom’s Bogorodskoe villa Alexander Medvedev, Deputy Chairman of Gazprom’s Management Committee, and Burckhard Bergmann, Chairman of E.ON Ruhrgas AG have signed an Agreement on prolongation of the existing contracts for gas supply via Waidhaus within 15 years (from 2020 to 2035) as well as an Agreement for additional gas supply via the North-European Gas Pipeline.
According to the prolonged contracts the annual gas supplies will reach some 20 bcm, while the total gas supplies will be up to 300 bcm.
The contract for gas deliveries via the NEGP stipulates that the annual transmission will account for 4 bcm. The total gas transmission during the 2010/2011- 2036 timeframe will be up to 100 bcm.
“These contracts strengthen partnership with the largest gas producer in the world. At the same time we compensate decreasing gas deliveries from the Western European resources and provide additional gas volumes for growing European market”, said Burckhard Bergmann.
“The long-term cooperation in gas business not only provides for meeting current commitments but creates a basis for future development of the present-day infrastructure insuring reliable gas supplies in the decades to come.
The long-term contract for NEGP gas deliveries signed today has a special meaning. The new contract is another evidence of the successful project development”, put Alexander Medvedev.
The German company E.ON AG is one of the world’s largest private energy and gas corporation with the annual revenue of up to € 56 billion and some 80 thousand personnel. It came into existence in 2000 as a merger of VEBA and VIAG.
From February 2003 E.ON Ruhrgas AG (named Ruhrgas AG until June 1, 2004) is a part of E.ON Group with responsibilities for the pan-European gas business including gas production, distribution, transmission and storage.
The company operates 11273-km-long gas pipeline system and has its own 12 large underground gas storage facilities with the total active gas volume of 5.1 bcm. With overall sales of 690.2 billion kw/h, E.ON Ruhrgas AG is the largest gas distributor in Germany and is one of the three leading companies in Europe.
The cooperation basis between the company and Gazprom was laid in the early 70’s when Ruhrgas AG along with a number of German industrial companies and banks took part in the development of the transit gas pipeline system for Russian gas deliveries from Siberia to the Western Europe.
E.ON Ruhrgas AG is one of the largest foreign shareholders of Gazprom. E.ON Ruhrgas AG holds about 6.5% share in Gazprom.
Gazprom successfully cooperates with E.ON Ruhrgas for a long time period in the area of gas pipeline corrosion protection, optimization of gas compressor units operation, dispatching and so on.
On June 8, 2004 Gazprom and E.ON AG have signed a Memorandum of Understanding to further cooperation in the companies’ strategic projects for gas deliveries as well as production, transmission, marketing and power industry.
On July 12, 2006 Gazprom and E.ON AG have signed a framework Agreement for asset exchange in natural gas production, sales and trade and power industry. The parties agreed to exchange 25% minus one share in Yuzhno-Russkoye gas condensate field for E.ON Ruhrgas majority shareholding including share participation of E.ON Ruhrgas Hungarian gas companies such as E.ON Fuldgaz Storage and E.ON Fuldgaz Trade (50% share minus one share in each company) as well as 25% share plus one share of the E.ON Hungaria regional energy and gas company. Additionally, Gazprom and E.ON agreed on implementing joint projects in energy production at the European gas power stations.
Information Directorate, OAO Gazprom