Gazprom and EDF announce cooperation agreement

• 11 years ago (2012-06-22)
• Junior Isles

Europe 1061

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Russian power giant Gazprom has signed a cooperation agreement with France's EDF to possibly construct or acquire gas-fired power plants in Europe.

Under the agreement, Gazprom would be the exclusive gas supplier for future joint power plants, the companies have said.

"The document provides for the possibility of joint construction of gas-fired power plants and acquisition of existing ones on a parity basis," the companies said in a joint statement.

According to the statement, the agreement is a culmination of "intensive work" between the companies, which began in 2009 and resulted in EDF taking a 15 per cent stake in the subsea section of the, 50 per cent Gazprom- owned, South Stream gas pipeline project.

"I am confident that joint efforts in this strategically important area will significantly contribute to the strengthening of the energy dialogue between Russia and Europe," said Gazprom CEO Alexei Miller.

"Today, EDF and Gazprom are extending their collaboration... EDF aims at building strong partnerships with worldwide major energy players," said EDF CEO Henri Proglio.

The agreement followed a meeting between the two CEOs at the St Petersburg International Economic Forum.

"The two parties discussed, in particular, Russian gas supplies to Germany and successful cooperation in development of the Yuzhno-Russkoye gas oil and gas field," according to the statement.

E.On holds around 25 per cent of the Yuzno-Russkoye field in West Siberia, with Germany's BASF holding a further quarter, and Gazprom controlling the other half.

Additionally, Miller and E.On’s CEO Johannes Thyssen talked about successful joint work in the Nord Stream project.

The Nord Stream gas pipeline brings Russian gas to Germany via the Baltic Sea, and Nord Stream's first line started operations last November. Work to double the project's current capacity is expected to be completed in October.

Gazprom controls a 51 per cent stake in Nord Stream. The other shareholders are BASF/Wintershall and E.On Ruhrgas, each with 15.5 per cent, as well as Gasunie and GDF Suez, each with a 9 per cent stake.