The memorandum will secure Gasunie up to 9% of the stock in the North European Gas Pipeline project, which will see Russian gas pumped directly to Western Europe through a pipeline across the floor of the Baltic Sea.
Gazprom owns 51% in the project operator, and German companies BASF and E. ON Ruhrgas, holding 24.5% each, will each sell the Dutch company a 4.5% stake in the project.
Gazprom will obtain a stake in the Balgzand Bacton Line, linking the Netherlands and the United Kingdom, with the Dutch company holding at least 51% in the project. Dutch-based BBL Company, which is building and will run the project, is owned by Gasunie (60%), E.ON Ruhrgas (20%) and Belgian natural gas operator Fluxys (20%).
"With the memorandum signed, our cooperation with Gasunie is entering a new phase, where by consolidating our efforts and experience, we will manage to implement large projects to ensure reliable long-term natural gas supply for European consumers," Gazprom CEO Alexei Miller said.
The parties will consider opportunities for the Russian gas giant to use Gasunie's infrastructure, including underground storage facilities, and have agreed to hold talks on long-term contracts involving the Netherlands' gas transportation network.
Marcel Kramer, the president of Gasunie, which runs pipelines totaling 12,000 km (7,450 miles) and transports around 100 billion cubic meters of gas a year, thanked the countries' governments for their support of the cooperation between the companies, which he said was highly important for the implementation of projects on such a scale.
In June 2004, Gazprom and N.V. Nederlandse Gasunie signed a memorandum of understanding on their strategic partnership. Under the document, the companies agreed to work together to make natural gas deliveries to the European market more flexible, and to respond more effectively to the seasonal fluctuations of demand on the market of final consumers.
The companies will also exchange experience in gas transportation network management and maintenance, and other areas.
