Gazprom sells natural gas to E.ON through 2036
The contract is bigger than the first contract for natural-gas deliveries through the pipeline signed by BASF and Gazprom. Wingas, a joint venture of the two companies, will from 2010 receive 9 billion cubic meters of natural gas for 25 years, the companies said in Oct. last year. Gazprom said one element of the deal secures E.ON deliveries of up to 300 billion cubic meters of gas from 2020 to 2035. Another part secures 100 billion cubic meters from 2010 to 2036. E.ON, whose Ruhrgas unit is Germany's largest gas supplier, aims to produce as much as 20% of its own gas needs to gain greater control of procurement costs and avoid competing for supplies. The $10.5 billion Baltic pipeline will increase available supplies to Germany by 28% from 2010. Natural gas is increasingly being used to heat flats and to generate power. Almost half of all flats in 2005 were heated with the fuel, up from about a fourth 15 years ago, according to figures from Ruhrgas. (Bloomberg)
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