Described by E.ON as "an important contribution towards safeguarding long-term European gas supplies", the German utility has signed a new deal to be supplied with approximately 400 billion cubic meters of gas up to 2036 by Russian firm Gazprom.

The annual deliveries of around 24 billion cubic meters are equivalent to one third of the gas volume currently purchased by E.ON Ruhrgas. Against the backdrop of fierce global competition to obtain gas, E.ON has therefore succeeded in procuring Russian gas on competitive conditions for the European energy market on a long-term basis, the company said in a statement.

The two energy firms signed an extension of 15 years of the existing contracts with Waidhaus as delivery point up to 2035 as well as new supply contracts for additional gas to come via the North European Gas Pipeline (NEGP) to Greifswald on Germany’s Baltic coast from 2010/2011 onwards.

Wulf Bernotat, CEO of E.ON said: Following our participation in the NEGP, we are again making an important contribution with these contracts towards securing gas supplies for Europe well into the future and further consolidating our position on the European gas market.