Gazprom and E.ON complete asset swap

Gazprom and E.ON have finalized an asset swap which will see the German energy giant with a stake in the Yuzhno-Russkoye gas field after four years of talks.

Gazprom has obtained 49% of the Russian energy trading company E.ON Gerosgas, which holds a 2.93% stake in Gazprom. In exchange E.ON has received a 25% stake minus three shares in the gas field, where it will join with BASF, its partner on the Nord Stream pipeline in developing the promising gas field.

The gas field is expected to provide half of the gas to fill Nord Stream when it is built.
Gazprom CEO Aleksey Miller hailed the agreement, saying it takes relations between the companies to a new level.

“We have reached a new level in our relations. We will now work jointly in the extraction of gas, its transportation, as well as distribution and sale. We have also discussed a possible co-operation with our German partners in the exploitation of the Yamal gas field. We have reached a level of friendship rather than just partnership.”

Meanwhile, Gazprom says demand for gas in Europe has returned to the pre-crises levels. Consumption plunged in the first half of the year due to the downturn, but is now higher than during the same periods in 2008 and 2007.