A working meeting of Mr. Alexey Miller, Gazprom’s Management Committee Chairman, Dr. Wulf Bernotate, E.ON AG’s Board Chairman, and Mr. Burghard Bergmann, E.ON Ruhrgas AG’s Board Chairman and a Member of the E.ON AG Board, was held today at Bogorodskoye, Gazprom’s durbar.
In line with the Memorandum of Understanding signed by Gazprom and E.ON AG, the parties continued the negotiations on key projects, focusing on the outlook of the companies’ cooperation in implementing strategic projects, particularly, in the field of gas production and power generation in Russia, gas transmission to Europe, and the development of infrastructure for gas and electricity distribution and marketing in Europe.
The negotiators stated that the detailed elaboration of joint business plans in the power generation sector and the gas industry was proceeding successfully.
The German company E.ON AG is the world’s biggest private energy holding concern with the annual turnover of EUR 46 billion and with over 66,000 employees. The company was founded in June 2000 as a result of the merger of the two recognized companies, VEBA and VIAG.
Since February 2003, E.ON Ruhrgas AG (Ruhrgas AG before July 1, 2004) has been an integral part of the E.ON AG concern, responsible for the gas business of the company in Europe, including natural gas production, marketing, transmission and storage. In 2003, gas sales accounted for about 58 bcm of natural gas, or 640 bln kWh. The turnover exceeded EUR 12 billion.
The company has a ramified gas transmission network with the total length of 11,200 km. The network includes 12 UGS facilities with an aggregate active gas capacity of 5 bcm. E.ON Ruhrgas AG ranks third on the European gas market.
The foundation of the Gazprom - E.ON Ruhrgas AG cooperation were laid in the early 1970s, when Ruhrgas AG, along with a number of German industrial companies and banks, participated in implementing the project on constructing gas transit pipelines to deliver Russian gas from Siberia to West Europe.
E.ON Ruhrgas AG with its 6.5% shareholding in Gazprom is the biggest foreign shareholder of Gazprom.
Russian gas supplied to E.ON Ruhrgas AG is then delivered to German and Swiss gas consumers under seven long-term agreements. Under these agreements, maximum commitments on gas supply total 23 bcm a year. In addition, in 2003-2004 E.ON Ruhrgas AG will receive 0.16 bcm/year of natural gas for marketing on the British market.
Over a number of years Gazprom has been fruitfully cooperating with E.ON Ruhrgas AG in the field of the anticorrosion protection of gas pipelines, the optimization of operational modes of gas compressor units, gas flow dispatching, etc.
Gazprom and E.ON AG signed the Memorandum of Understanding on July 8, 2004. The paper confirms the agreements reached on deepening the bilateral cooperation in implementing strategic projects.
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