Gazprom signs deal to expand gas pipeline

Gazprom has signed a memorandum of understanding with a German chemical producer to expand a gas pipeline from Russia to Germany via the Baltic Sea. The Nord Stream II project […]

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By Priyanka Shrestha

Gazprom has signed a memorandum of understanding with a German chemical producer to expand a gas pipeline from Russia to Germany via the Baltic Sea.

The Nord Stream II project will consist of two additional pipelines that could transport up to 55 billion cubic meters of gas.

It will be a new route for Russian gas exports to Europe.

German BASF subsidiary Wintershall said it intends to work together with Russia’s Gazprom on the project.

It already has a 15.5% stake in the previous Nord Stream pipeline, which has been operational since October 2012.

Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee said: “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.”

Germany, the biggest Russian gas consumer, bought 40.3 billion cubic meters from Gazprom last year, the company added.

Nord Stream AG is a joint company – Gazprom holds 51%, Wintershall and E.ON 15.5% and ENGIE 9% operating the project.