BASF/Wintershall and Gazprom have already been co-operating successfully for a quarter of a century: the two companies laid the foundations for their co-operation in autumn 1990 with a long-term agreement to market Russian natural gas in Germany. Just recently they decided to extend their co-operation at the source and to expand the joint natural gas production in Siberia. Additionally, together with other partners, the companies are also planning the extension of the Nord Stream Baltic Sea pipeline.
Today, the companies are celebrating their 25 year German-Russian partnership with a ceremony in St. Petersburg. Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, and Alexey Miller, Chairman of the Management Committee of PAO Gazprom, will join the other guests in celebrating this successful economic co-operation in St. Petersburg.
Comments on the co-operation
“Our co-operation is an important component in securing Europe’s energy supply,” Bock said during a press conference held in conjunction with the celebrations in St. Petersburg. “Particularly now, in current times, Russian-German co-operation represents an opportunity. The business community can build bridges. BASF and Gazprom intend to further extend their partnership.”
The two companies share more than just a long history
Bock stated: “We share the potential for a successful future together. I firmly believe that Russia is and will remain an important and reliable supplier of natural gas, oil and other natural resources for Europe. And Europe is and will remain an important and reliable market for Russia. We are proud of what we have achieved together and are actively tackling the tasks that lie ahead of us.”
“Over 25 years Gazprom and BASF/Wintershall have accumulated considerable experience across different segments: from natural gas production and transport to storage and marketing. Consistent consolidation of our positions along the whole production line lays the groundwork for future common success, and makes a pledge of stable gas supply of Europe for decades to come,” said Gazprom’s Alexey Miller.
25 years of co-operation along the supply chain
The German-Russian cooperation between BASF and Gazprom was something completely new in the gas industry in 1990. BASF and Gazprom introduced competition to the gas market in Germany and Europe in the 1990s by building pipelines, and developed a natural gas trading business. Together, BASF and Gazprom have supplied the European market with more than 700 billion m3 of natural gas in the last 25 years via their joint ventures.
In their joint ventures in Siberia, Achimgaz and Severneftegazprom (Yuzhno Russkoye), the two companies have already been producing natural gas together for about ten years. Since the closing of the asset swap between BASF and Gazprom at the end of September 2015, the BASF subsidiary Wintershall also holds a stake of 25.01% in Blocks IV and V of the Achimov Formation in the Urengoy natural gas and condensate field in West Siberia. Both blocks will be developed jointly by Gazprom and Wintershall in the coming years. In return, Gazprom will now run the previously jointly operated natural gas trading and storage business.
Edited from source by Stephanie Roker