BASF subsidiary Wintershall has signed a memorandum of understanding (MoU) with Gazprom to expand the capacities of the offshore natural gas project, Nord Stream pipeline.
The expansion of the pipeline, which will deliver Russian natural gas to European customers through the Baltic Sea, will comprise two additional pipelines.
The pipelines are expected to transport up to 55 billion additional cubic metres of Russian natural gas to Germany through two connecting pipelines OPAL (Ostsee-Pipeline-Anbindungs-Leitung – Baltic Sea Pipeline Link) and NEL (Nordeuropäische Erdgasleitung – North European Gas Pipeline) NEL.
PJSC Gazprom management committee deputy chairman Alexander Medvedev said: "In view of the rising demand for gas across the whole of Europe, the expansion of the gas transportation infrastructure, which provides a direct link from the Russian gas deposits to the European markets, will help to further improve the security of the gas supply for the European continent."
BASF board of executive directors’ member Hans-Ulrich Engel said: "BASF and Gazprom have been cooperating for more than 20 years on the construction of pipelines to ensure secure supplies of Russian gas to Europe.
"We want to bring our expertise in this field to the expansion of Nord Stream and look forward to working with Gazprom and further European partners on this important infrastructure project."
E.ON, OMV and Shell are also set to participate in the construction of the two additional lines of the pipeline.
Wintershall has a 15.5% stake in the first two lines of Nord Stream which have been operational since October 2012.
Image: The pipeline will deliver Russian natural gas to European customers through the Baltic Sea. Photo: courtesy of Wintershall Holding GmbH.