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Gazprom and Verbundnetz Gas Sign Co-Operation Agreement

Posted on: Friday, 2 May 2008, 03:00 CDT

Gazprom and Verbundnetz Gas have signed an agreement of co-operation in the underground gas storage sector.

Pursuant to the agreement, the parties will construct a new underground gas storage (UGS) facility near Bernburg, Saxonia-Anhalt, Germany. The first gas storage cavern is planned to begin operation in 2009 and the last one in 2022. By the end of construction the active capacity of the UGS facility will account for 510 million cubic meters of gas.

Alexander Medvedev, deputy chairman of the management committee of Gazprom, said: "The Gazprom Group's participation in UGS projects in Germany represents a concrete example of the execution by the company of its strategy aimed at providing European energy security."

Klaus-Ewald Holst, chairman of the executive board of Verbundnetz Gas (VNG), said: "Within the next 14 years Gazprom and VNG are determined to jointly invest circa E350 million in the construction of UGS facilities and to create a total of 10 additional caverns in Saxonia-Anhalt. In this way, our companies will make a substantial contribution to higher reliability of supply to European consumers."

Source: Datamonitor

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