Gazprom and EDF discuss French company’s entry in South Stream project
The Gazprom headquarters hosted a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Henri Proglio, Chairman and CEO of EDF Group (France).
The meeting focused on EDF entry in the shareholding structure of the South Stream AG joint project company. The meeting participants stressed the relevance and significance of the South Stream gas pipeline implementation for the European energy security enhancement.
In addition, Alexey Miller and Henri Proglio discussed the issues of bilateral cooperation under the Memorandum of Understanding signed in November 2009 and envisaging, among other things, partnership deepening between Gazprom and EDF in the power generation.
EDF Group, one of the leaders in the European energy market, is an integrated energy company running such businesses as electricity generation, transmission, distribution, supply and trading. The Group is the leading power producer in Europe.
In January 2008 the South Stream AG joint project company (JPC) was registered in Switzerland. The company was established by Gazprom and Eni on a parity basis.
On November 27, 2009 Gazprom and EDF inked the Memorandum of Understanding envisaging, among other things, possible participation of EDF in constructing the South Stream gas pipeline offshore section.
On June 19, 2010 Gazprom, Eni and EDF signed the trilateral Memorandum providing for specific steps towards the Group entry in the South Stream AG shareholding structure. The Memorandum contemplates that EDF entry will be performed through Eni's stake reduction in the JPC. EDF will hold at least 10 per cent in the project.
On March 21, 2011 Gazprom and BASF SE signed the Memorandum of Understanding on the South Stream project, providing for participation of Wintershall Holding GmbH (a wholly-owned subsidiary of BASF) in constructing the gas pipeline offshore section. The Memorandum identifies that Wintershall Holding GmbH will acquire a 15 per cent stake in South Stream AG, while Gazprom will retain 50 per cent.