Russia: Gazprom, E.ON Meeting Addresses Bilateral Cooperation

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Dr. Johannes Teyssen, Chairman and Chief Executive Officer of E.ON took place on Friday as part of St. Petersburg International Economic Forum 2012.

The meeting addressed the bilateral cooperation outlook placing an emphasis on the issues of Russian gas supplies to Germany. They also emphasized the successful interaction of the companies within the project for the Yuzhno-Russkoye oil and gas field development (subsurface use license owned by Severneftegazprom ).

Alexey Miller and Johannes Teyssen also appreciated the cooperation within the Nord Stream project.

Background

E.ON is Europe’s largest private power and gas concern.

In October 2008 Gazprom and E.ON entered into the Agreement on joint participation in the Yuzhno-Russkoye oil and gas field development project.

In June 2009 – the parties signed the Agreement on asset swap in the area of gas production and trade. Pursuant to the Agreement, Gazprom received a 49 per cent stake in Gerosgaz holding 2.93 per cent of the Company’s shares. As a result of the deal the ownership right for this stake was completely transferred from E.ON Ruhrgas to Gazprom. In its turn, E.ON acquired a 25 per cent stake in the charter capital of Severneftegazprom (thus, the stake of E.ON amounted to 25 per cent less three ordinary registered shares and three preferred non-voting shares).

E.ON also partners Gazprom in the Nord Stream gas pipeline construction.

On November 8, 2011 the first gas pipeline string with the throughput of 27.5 billion cubic meters was put onstream.

On April 18, 2012 the second gas pipeline string was placed ahead of schedule (schedule deadline – May 5, 2012).

The second string pre-commissioning operations were started.

The pre-commissioning operations will be followed by natural gas feeding into the second string.

It is projected to commission the second string (27.5 billion cubic meters) in the fourth quarter of 2012.

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Subsea World News Staff , June 25, 2012; Image: Gazprom