Gas Storage Facility Reportedly Part of Gazprom - BASF Asset Swap Deal

Russia’s Gazprom and Germany’s BASF met to discuss cooperation opportunities, also referring to an asset swap deal between Gazprom and Wintershall.

‘It was pointed out that the swap would enable the companies to substantially strengthen their positions along the entire value chain from upstream to downstream,’ reads the note released by Gazprom on Tuesday.

According to the Russian company, the companies also discussed ‘joint infrastructure projects including South Stream.’ 

Germany's Deutsche Welle reported that framework of the potential agreement between Gazprom and BASF, would see Russia acquire Europe's largest underground gas storage facility located in the small German town of Rehden, Lower Saxony.

Wintershall, which is a wholly-owned subsidiary of BASF, also cooperates with Gazprom in the Urengoyskoye field, in the Yuzhno-Russkoye field and in the Nord Stream project.

Wintershall owns 15.5% of the project, with the majority being controlled by Gazprom (51%). The project connecting Russia and Germany through the Baltic Sea has been inaugurated in 2011. Gerhard Schröder, former Chancellor, is the Chairman of the Shareholders’ Committee of the Nord Stream.

ASSET SWAP DEAL

Wintershall and Gazprom signed a Master Agreement to swap assets on December 23, 2013. 

‘As a result of the deal, Gazprom will increase its stakes in European gas trading and storage companies WINGAS, WIEH and WIEE to 100 per cent as well as receive a 50 per cent stake in WINGAS involved in hydrocarbon exploration and production in the North Sea. In its turn, Wintershall will obtain a 25.01 per cent share in the project for developing blocks 4A and 5A in the Achimov deposits of the Urengoyskoye oil, gas and condensate field,’ wrote Gazprom.