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Gazprom, E.ON prolong gas contracts for 15 years

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MOSCOW, August 29 (RIA Novosti) - Gazprom [RTS: GAZP] and Germany's E.ON Ruhrgas AG signed an agreement Tuesday to prolong the existing contracts on Russian natural gas supplies via the German-Czech border for 15 years from 2020 to 2035, the Russian energy giant's press service said.

Gazprom said supplies would total 300 billion cubic meters.

Gazprom and E.ON Ruhrgas AG, the world's largest private energy concern, also signed a contract on additional supplies of 100 bln cu m gas via the North European Gas Pipeline (NEGP) between 2010-2011 and 2036.

Gazprom Deputy CEO Alexander Medvedev said, "Long-term cooperation in the natural-gas business not only provides an opportunity to fulfill current obligations but also allows us to establish a foundation for the future and develop modern infrastructure to ensure reliable natural-gas supplies in the following decades."

German companies BASF and E.ON are Gazprom's partners in the $10.5-billion NEGP project to supply western Europe with gas via a pipeline leading from Russia to Germany across the floor of the Baltic Sea.

Medvedev said the new contract on gas supplies via the NEGP was "further proof that the project is being successfully implemented."

The NEGP, which is to include two parallel legs measuring 750 miles each, will connect the Baltic seashore near the Russian city of Vyborg with the Greifswald region on the German coast.

The first leg of the pipeline is expected to have annual capacity of 27.5 billion cubic meters, and the second will double the capacity to 55 billion cu m.

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