Baltic Sea gas line approved

Offshore staff

Early this week, Wintershall and Gazprom signed a memorandum of understanding to expand their joint activities in gas supply to European customers. The two have collaborated for the past 15 years in natural gas trading, supplying over 100 bcm to Germany alone via their joint venture Wingas. The latter recently extended its long-term contracts for Siberian gas from Gazprom's subsidiary OOO Gazexport through 2030.

One of the partnerships' main aims is to supply markets farther west in Europe, in light of declining gas production in the North Sea. Both companies have therefore agreed to build a new long-distance transportation system known as the NEGP Northern European Gas Pipeline, which will follow a route via the Baltic Sea, bringing in gas from the Yushno Russkoje field. Wingas will also oversee connection of this new trunkline into its existing pipeline network. Other western European gas trading companies have been approached to serve as partners in the project.

4/12/05