Gazprom, BASF to cooperate on Nord Stream II project
Russia’s OAO Gazprom and Germany’s BASF SE have signed a memorandum of intent stipulating cooperation on construction of the Nord Stream II gas pipeline.
The companies would be involved in constructing strings No. 3 and No. 4 that would connect the Russian and German coasts under the Baltic Sea. The new capacity will total 55 billion cu m/year. Gazprom, E.On, Royal Dutch Shell PLC, and OMV AG each previously agreed to participate in construction of the two strings.
“With due account of the growing demand of the European Union, the expanding gas infrastructure directly connecting Russian gas fields to European markets will further boost the reliability of gas supplies in Europe,” said Alexander Medvedev, deputy chairman of the Gazprom management committee.
Germany is the biggest consumer of Russian gas. Gazprom in 2014 sold 40.3 billion cu m to Germany.
The first two strings of Nord Stream have been operational since 2012, when Gazprom also reported plans the build the third and fourth strings (OGJ Online, Oct. 9, 2012). Gas arrives at the mainland in Lubmin, Germany, on the Baltic coast and is transported from there via two connecting pipelines—OPAL and NEL—to Western and Central Europe.
Nord Stream AG is a joint company in which Gazprom holds 51% interest, BASF subsidiary Wintershall Holding GMBH and E.On SE each hold 15.5%, and Engie with 9%.