History
On 8 September, 2005, in Berlin OAO Gazprom, BASF AG and E.ON AG signed a basic agreement on the construction of the North European Gas Pipeline (NEGP) through the Baltic Sea. The parties to the agreement intend to set up the North European Gas Pipeline Company as a joint German-Russian venture, with Gazprom holding 51 % and BASF and E.ON each 24.5 %.
On 11 April, 2005, Hannover, Germany, hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, Dr. Wulf Bernotat, Board Chairman of E.ON AG, and Dr. Burkhard Bergmann, Board Chairman of E.ON Ruhrgas AG and Board Member of E.ON AG. In accordance with their agreement, E.ON may purchase up to 25% in the project to develop the Yuzhno-Russkoye gas field. In its turn, Gazprom may purchase an equal interest in European gas and electricity assets of E.ON. Both companies will continue to discuss possible E.ON participation in the North European gas pipeline project and joint projects in the Russian electrical power industry.
On 11 April, 2005, in Hannover, Germany, in the presence of Russian President Vladimir Putin and German Chancellor Gerhard Schröder, Alexey Miller, Management Committee Chairman of OAO Gazprom, and Dr. Jürgen Hambrecht, Board Chairman of BASF AG, signed a Memorandum of Understanding. Pursuant to the document, OAO Gazprom will increase its share in Wingas, its joint venture with Wintershall AG (100% subsidiary of BASF AG), from 35% to 50% minus one share. The Memorandum says that the companies will expand their cooperation in the field of gas exploration and extraction in Russia. In particular, OAO Gazprom and Wintershall AG agreed to develop jointly the Yuzhno-Russkoye gas field. Wintershall AG will have 50% minus one share in the project. The document also allows participation of other West European companies, which can make a substantial contribution into the project implementation. The Memorandum includes an agreement on Wingas participation in the North European gas pipeline project. It is expected that Wingas will connect the NEGP to the German gas grid.
On 21 March, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Dr. Claus Mangold, Chairman of the Eastern Economic Committee of Germany. The parties exchanged opinions on the key areas of Russian-German cooperation in energy. It was agreed that the key principle of cooperation between Russian and German power companies would continue to be a beneficial long-term partnership covering the entire process from extraction to sale of end products. The meeting paid special attention to the cooperation between Russia and Germany in implementing the North European gas pipeline.
On 16 March, 2005, in Munich, Alexey Miller, Management Committee Chairman of OAO Gazprom, and Claus Kleinfeld, Board Chairman of Siemens AG, signed an agreement on strategic partnership between OAO Gazprom and Siemens AG. The document regulates the parties’ cooperation, among other things, under new Gazprom projects including construction of the North European gas pipeline, development of the Yuzhno-Russkoye deposit, expansion of gas transport systems outside Russia and electrical power projects.
On 24 February, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Eyvind Reyten, President of the Norwegian company Hydro. Eyvind Reyten confirmed Hydro’s desire to take part in the North European gas pipeline project and intention to actively develop the parties’ cooperation in the gas market of Europe.
On 12 February, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Dr. Jürgen Hambrecht, Board Chairman of BASF AG. The parties discussed future expansion of their cooperation, in particular, in implementation of new Gazprom projects including construction of the North European gas pipeline and development of deposits.
On 8 February, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Claus Kleinfeld, Board Chairman of Siemens AG. The parties discussed implementation of their Memorandum of Cooperation. Among other things, Alexey Miller and Claus Kleinfeld discussed bilateral cooperation in implementation of new Gazprom projects including construction of the North European gas pipeline, development of the Yuzhno-Russkoye deposit, expansion of gas transport systems outside Russia and electrical power projects. Decision was made to amend the Memorandum considering new fields of cooperation.
On 22 December, 2004, when a delegation of OAO Gazprom was visiting France, Alexey Miller met Jean-Francois Sirelli, President of Gaz de France. The parties discussed future cooperation between Gazprom and Gaz de France including possible forms of cooperation under the North European gas pipeline project. The parties agreed to develop their long-term cooperation under the project, which in their opinion would make gas supplies to Europe more safe and meet the growing demand in the European gas market.
On 7 December, 2004, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Lord Brown, head of BP group of companies. The parties discussed future bilateral cooperation in the global energy market and Russia including possible BP participation in the North European gas pipeline project.
In November 2004, the Management Committee of OAO Gazprom held a meeting to discuss urgent measures to put the Yuzhno-Russkoye deposit into operation. The Management Committee instructed OAO Severneftegazprom to start development of the Yuzhno-Russkoye gas and oil field and put it into operation in 2007.
On 22 October, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, as part of regular meetings between the companies’ heads met Lord Brown, President of BP group of companies. The parties discussed bilateral cooperation in the global energy market. In particular, Alexey Miller and Lord Brown discussed possible participation of BP in implementation of the North European gas pipeline project as a member of the pipeline consortium and a buyer of gas for the UK market.
On 20 October, 2004, when a delegation of OAO Gazprom was visiting Germany, Alexey Miller, Management Committee Chairman of OAO Gazprom, met Dr. Jürgen Hambrecht, Board Chairman of BASF AG. The parties discussed their future cooperation including Wingas GmbH, a joint venture of OAO Gazprom and Wintershall AG (100% subsidiary of BASF AG). Representatives of Wingas GmbH are now members of a working group, which prepares a feasibility study for the North European gas pipeline construction project.
In July 2004, Å.ON Ruhrgaz and OAO Gazprom signed a memorandum of understanding setting forth arrangements to expand the parties’ successful cooperation in strategic projects. In particular, the Memorandum provides for an active cooperation between the two companies to implement the North European gas pipeline project.
On 11 June, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, convened a meeting in the central office of OAO Gazprom to discuss the implementation of an investment project to develop the Yuzhno-Russkoye deposit. Participants discussed project financing as a means to develop the gas field and the current condition of preparing the North European gas pipeline construction project. 70% of geological engineering survey was completed by early June 2004 along the pipeline route between Gryazovets and Vyborg. 90% of initial geological engineering data was collected in connection with the route and areas for compression stations. It was specially noted that all work was being performed in accordance with the schedule.
On 27 May, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, met George Verberg, President of Gasunie and President of the International Gas Union. The parties discussed the current condition and future of their companies’ cooperation. Alexey Miller and George Verberg also discussed the participation of Gasunie in the North European gas pipeline construction project.
On 17 March, 2004, OAO Gazprom hosted a meeting to discuss development of the Yuzhno-Russkoye gas field, which decided to make the deposit the basic source of gas supplies by the North European gas pipeline. In this connection, decision was made to synchronize the preparation of business plans and feasibility studies for both the NEGP and the Yuzhno-Russkoye field.
In February 2004, the central office of OAO Gazprom hosted a meeting to discuss implementation of the North European gas pipeline construction project. Participants were saying that the draft business plan for the NEGP project was close to completion and could be laid into the basis of a detailed feasibility study. The meeting also decided on the key criteria of selecting international partners for the project.
On 10 February, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, met Herbert Walter, Board Chairman of Dresdner Bank AG, who announced that Dresdner Bank AG would act as one of financial advisers for the North European gas pipeline construction project.
On 16 January, 2004, the Russian Government issued Decree No. 64-p accepting the proposal of the Russian Energy Ministry and OAO Gazprom approved by the concerned federal executive agencies to design the North European gas pipeline. The Decree instructed the Russian Energy Ministry in coordination with OAO Gazprom to prepare requisite NEGP construction documents. The Russian Ministries of Construction and Natural Resources were told to evaluate the documents.
On 30 June, 2003, Russian President Vladimir Putin and British Prime Minister Antony Blair met to sign a bilateral Russian-British memorandum of cooperation to implement the North European gas pipeline project.
On 3 December, 2002, the central office of OAO Gazprom hosted the presentation of a new Gazprom strategic project, construction of the North European gas pipeline.
On 28 and 29 November, 2002, London hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, and Brian Wilson MP, Power Minister of the UK, and managers of BP, Royal Dutch/Shell, Centrica and Goldman Sachs. The meeting discussed a wide range of issues of mutual interest including prospects of implementing the NEGP project.
On 26 November, 2002, Alexey Miller, Management Committee Chairman of OAO Gazprom, met in The Hague Jan Peter Balkenende, Prime Minister of The Netherlands, and George Verberg, President of the national gas company Gasunie. The parties discussed gas cooperation including implementation of the NEGP project.
On 25 November, 2002, Helsinki hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, and Paavo Lipponen, Prime Minister of Finland, and Matti Vuoria, Board Chairman of Fortum. The parties discussed the gas cooperation between Russia and Finland including implementation of the NEGP project.
On 21 November, 2002, Alexey Miller, Management Committee Chairman of OAO Gazprom, met Valery Serdyukov, Governor of the Leningrad Region. The parties decided to create a joint working group to perform engineering research and coordinate the NEGP project in the Leningrad Region.
On 18 November, 2002, the Management Committee of OAO Gazprom decided to start implementation of the NEGP project approving a plane of events and an extended schedule of NEGP implementation.
On 11 November, 2002, Brussels hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, and Francois Lamourier, General Director of the EU Commission for Energy and Transport. Mr. Lamourier announced that the Commission saw the NEGP project as a priority and would present it at the European Reconstruction and Development Bank.
In December 2000, considering the desire of EU countries to create a common European energy market and a common energy supply system, where Russia would play the leading role in organizing new routes of supplying natural gas to Western Europe, the European Commission awarded to the NEGP project the status of TEN (Transeuropean Network). This status will facilitate implementation of the project in countries of the European Union and attraction of EU investment.
In 1997 – 1999, leading international engineering companies and Russian research institutes carried out a comprehensive maritime research in the Baltic Sea. Feasibility study for the underwater section confirmed the technical feasibility and economic efficiency of NEGP construction.
On 11 April, 2005, Hannover, Germany, hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, Dr. Wulf Bernotat, Board Chairman of E.ON AG, and Dr. Burkhard Bergmann, Board Chairman of E.ON Ruhrgas AG and Board Member of E.ON AG. In accordance with their agreement, E.ON may purchase up to 25% in the project to develop the Yuzhno-Russkoye gas field. In its turn, Gazprom may purchase an equal interest in European gas and electricity assets of E.ON. Both companies will continue to discuss possible E.ON participation in the North European gas pipeline project and joint projects in the Russian electrical power industry.
On 11 April, 2005, in Hannover, Germany, in the presence of Russian President Vladimir Putin and German Chancellor Gerhard Schröder, Alexey Miller, Management Committee Chairman of OAO Gazprom, and Dr. Jürgen Hambrecht, Board Chairman of BASF AG, signed a Memorandum of Understanding. Pursuant to the document, OAO Gazprom will increase its share in Wingas, its joint venture with Wintershall AG (100% subsidiary of BASF AG), from 35% to 50% minus one share. The Memorandum says that the companies will expand their cooperation in the field of gas exploration and extraction in Russia. In particular, OAO Gazprom and Wintershall AG agreed to develop jointly the Yuzhno-Russkoye gas field. Wintershall AG will have 50% minus one share in the project. The document also allows participation of other West European companies, which can make a substantial contribution into the project implementation. The Memorandum includes an agreement on Wingas participation in the North European gas pipeline project. It is expected that Wingas will connect the NEGP to the German gas grid.
On 21 March, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Dr. Claus Mangold, Chairman of the Eastern Economic Committee of Germany. The parties exchanged opinions on the key areas of Russian-German cooperation in energy. It was agreed that the key principle of cooperation between Russian and German power companies would continue to be a beneficial long-term partnership covering the entire process from extraction to sale of end products. The meeting paid special attention to the cooperation between Russia and Germany in implementing the North European gas pipeline.
On 16 March, 2005, in Munich, Alexey Miller, Management Committee Chairman of OAO Gazprom, and Claus Kleinfeld, Board Chairman of Siemens AG, signed an agreement on strategic partnership between OAO Gazprom and Siemens AG. The document regulates the parties’ cooperation, among other things, under new Gazprom projects including construction of the North European gas pipeline, development of the Yuzhno-Russkoye deposit, expansion of gas transport systems outside Russia and electrical power projects.
On 24 February, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Eyvind Reyten, President of the Norwegian company Hydro. Eyvind Reyten confirmed Hydro’s desire to take part in the North European gas pipeline project and intention to actively develop the parties’ cooperation in the gas market of Europe.
On 12 February, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Dr. Jürgen Hambrecht, Board Chairman of BASF AG. The parties discussed future expansion of their cooperation, in particular, in implementation of new Gazprom projects including construction of the North European gas pipeline and development of deposits.
On 8 February, 2005, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Claus Kleinfeld, Board Chairman of Siemens AG. The parties discussed implementation of their Memorandum of Cooperation. Among other things, Alexey Miller and Claus Kleinfeld discussed bilateral cooperation in implementation of new Gazprom projects including construction of the North European gas pipeline, development of the Yuzhno-Russkoye deposit, expansion of gas transport systems outside Russia and electrical power projects. Decision was made to amend the Memorandum considering new fields of cooperation.
On 22 December, 2004, when a delegation of OAO Gazprom was visiting France, Alexey Miller met Jean-Francois Sirelli, President of Gaz de France. The parties discussed future cooperation between Gazprom and Gaz de France including possible forms of cooperation under the North European gas pipeline project. The parties agreed to develop their long-term cooperation under the project, which in their opinion would make gas supplies to Europe more safe and meet the growing demand in the European gas market.
On 7 December, 2004, the central office of OAO Gazprom hosted a meeting between Management Committee Chairman Alexey Miller and Lord Brown, head of BP group of companies. The parties discussed future bilateral cooperation in the global energy market and Russia including possible BP participation in the North European gas pipeline project.
In November 2004, the Management Committee of OAO Gazprom held a meeting to discuss urgent measures to put the Yuzhno-Russkoye deposit into operation. The Management Committee instructed OAO Severneftegazprom to start development of the Yuzhno-Russkoye gas and oil field and put it into operation in 2007.
On 22 October, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, as part of regular meetings between the companies’ heads met Lord Brown, President of BP group of companies. The parties discussed bilateral cooperation in the global energy market. In particular, Alexey Miller and Lord Brown discussed possible participation of BP in implementation of the North European gas pipeline project as a member of the pipeline consortium and a buyer of gas for the UK market.
On 20 October, 2004, when a delegation of OAO Gazprom was visiting Germany, Alexey Miller, Management Committee Chairman of OAO Gazprom, met Dr. Jürgen Hambrecht, Board Chairman of BASF AG. The parties discussed their future cooperation including Wingas GmbH, a joint venture of OAO Gazprom and Wintershall AG (100% subsidiary of BASF AG). Representatives of Wingas GmbH are now members of a working group, which prepares a feasibility study for the North European gas pipeline construction project.
In July 2004, Å.ON Ruhrgaz and OAO Gazprom signed a memorandum of understanding setting forth arrangements to expand the parties’ successful cooperation in strategic projects. In particular, the Memorandum provides for an active cooperation between the two companies to implement the North European gas pipeline project.
On 11 June, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, convened a meeting in the central office of OAO Gazprom to discuss the implementation of an investment project to develop the Yuzhno-Russkoye deposit. Participants discussed project financing as a means to develop the gas field and the current condition of preparing the North European gas pipeline construction project. 70% of geological engineering survey was completed by early June 2004 along the pipeline route between Gryazovets and Vyborg. 90% of initial geological engineering data was collected in connection with the route and areas for compression stations. It was specially noted that all work was being performed in accordance with the schedule.
On 27 May, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, met George Verberg, President of Gasunie and President of the International Gas Union. The parties discussed the current condition and future of their companies’ cooperation. Alexey Miller and George Verberg also discussed the participation of Gasunie in the North European gas pipeline construction project.
On 17 March, 2004, OAO Gazprom hosted a meeting to discuss development of the Yuzhno-Russkoye gas field, which decided to make the deposit the basic source of gas supplies by the North European gas pipeline. In this connection, decision was made to synchronize the preparation of business plans and feasibility studies for both the NEGP and the Yuzhno-Russkoye field.
In February 2004, the central office of OAO Gazprom hosted a meeting to discuss implementation of the North European gas pipeline construction project. Participants were saying that the draft business plan for the NEGP project was close to completion and could be laid into the basis of a detailed feasibility study. The meeting also decided on the key criteria of selecting international partners for the project.
On 10 February, 2004, Alexey Miller, Management Committee Chairman of OAO Gazprom, met Herbert Walter, Board Chairman of Dresdner Bank AG, who announced that Dresdner Bank AG would act as one of financial advisers for the North European gas pipeline construction project.
On 16 January, 2004, the Russian Government issued Decree No. 64-p accepting the proposal of the Russian Energy Ministry and OAO Gazprom approved by the concerned federal executive agencies to design the North European gas pipeline. The Decree instructed the Russian Energy Ministry in coordination with OAO Gazprom to prepare requisite NEGP construction documents. The Russian Ministries of Construction and Natural Resources were told to evaluate the documents.
On 30 June, 2003, Russian President Vladimir Putin and British Prime Minister Antony Blair met to sign a bilateral Russian-British memorandum of cooperation to implement the North European gas pipeline project.
On 3 December, 2002, the central office of OAO Gazprom hosted the presentation of a new Gazprom strategic project, construction of the North European gas pipeline.
On 28 and 29 November, 2002, London hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, and Brian Wilson MP, Power Minister of the UK, and managers of BP, Royal Dutch/Shell, Centrica and Goldman Sachs. The meeting discussed a wide range of issues of mutual interest including prospects of implementing the NEGP project.
On 26 November, 2002, Alexey Miller, Management Committee Chairman of OAO Gazprom, met in The Hague Jan Peter Balkenende, Prime Minister of The Netherlands, and George Verberg, President of the national gas company Gasunie. The parties discussed gas cooperation including implementation of the NEGP project.
On 25 November, 2002, Helsinki hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, and Paavo Lipponen, Prime Minister of Finland, and Matti Vuoria, Board Chairman of Fortum. The parties discussed the gas cooperation between Russia and Finland including implementation of the NEGP project.
On 21 November, 2002, Alexey Miller, Management Committee Chairman of OAO Gazprom, met Valery Serdyukov, Governor of the Leningrad Region. The parties decided to create a joint working group to perform engineering research and coordinate the NEGP project in the Leningrad Region.
On 18 November, 2002, the Management Committee of OAO Gazprom decided to start implementation of the NEGP project approving a plane of events and an extended schedule of NEGP implementation.
On 11 November, 2002, Brussels hosted a meeting between Alexey Miller, Management Committee Chairman of OAO Gazprom, and Francois Lamourier, General Director of the EU Commission for Energy and Transport. Mr. Lamourier announced that the Commission saw the NEGP project as a priority and would present it at the European Reconstruction and Development Bank.
In December 2000, considering the desire of EU countries to create a common European energy market and a common energy supply system, where Russia would play the leading role in organizing new routes of supplying natural gas to Western Europe, the European Commission awarded to the NEGP project the status of TEN (Transeuropean Network). This status will facilitate implementation of the project in countries of the European Union and attraction of EU investment.
In 1997 – 1999, leading international engineering companies and Russian research institutes carried out a comprehensive maritime research in the Baltic Sea. Feasibility study for the underwater section confirmed the technical feasibility and economic efficiency of NEGP construction.
