Gazprom finalizes first supply contract for new western pipeline

Russian gas major Gazprom has concluded its first deal to supply gas to western Europe through its North TransGas pipeline with Wingas.

According to a press release from Gazprom, Wingas will receive 9 billion cubic meters of natural gas annually to supply German and other western European customers for 25 years from the pipeline’s launch in 2010.

Wingas, a joint venture organization between Gazprom and German company BASF, arranged the deal with Gazexport, the Russian oil giant’s export company.

The North TransGas pipeline, which will pipe gas directly to Germany, will be constructed over the next five years. The unique gas line will travel both overland and under the Baltic Sea. The North European Gas Pipeline Company will be formed to realize the project. Gazprom will own a 51% majority stake, while BASF and E.ON will each have a 24.5% stake.