UPI Energy Watch

Russia, Germany to strengthen energy ties

The heads of Russia's Gazprom and Germany's E.ON Ruhrgas are looking to strengthen cooperation in the energy sector, Itar-Tass reported.

Alexei Miller of Gazprom and Bernhard Reutersberg of E.ON met Tuesday to discuss new possibilities for cooperation on the world energy markets, Gazprom's news service said.

The meeting was held in Gazprom's headquarters, which Reutersberg was visiting in the format of his first visit abroad as the company's president.

The two sides also discussed progress in the agreements signed between the companies earlier, the news service said.

E.ON is the largest private energy and gas concern in Europe.

E.ON Ruhrgas is Gazprom's largest foreign shareholder with a 6.5-percent stake.

Gazprom and E.ON Ruhrgas laid the groundwork for cooperation at the beginning of the 1970s. Ruhrgas was one of the first big buyers of Russian natural gas in West Europe.

Gazprom and Ruhrgas signed the memoranda of mutual understanding in Berlin in 2000 and in Moscow in 2002, the news service said.

In 2004 Gazprom and E.ON signed another memorandum of mutual understanding that fixed agreements on further cooperation in the sphere of the companies' strategic projects.

The joint projects in the gas production, transportation and marketing and electricity-generation projects added to the traditional spheres of cooperation in the gas delivery area.

Turkmenistan, Turkey to hold energy talks

Turkmen and Turkish leaders discussed energy cooperation Tuesday during the Turkmen president's visit to Turkey.

Turkmen President Gurbanguly Berdymukhamedov met with Turkish officials to discuss the transportation of Turkmen natural gas through Turkey to the European countries.

The gas pipeline project, which will link Turkmenistan, Turkey and Europe, was discussed. The pipeline may not pass through Azerbaijan, with which Ashgabat has certain disagreements, but through Iran.

Gazprom, ENI discuss South Stream progress

Gazprom head Alexei Miller and ENI Chief Executive Paolo Scaroni discussed hydrocarbon cooperation and noted significant progress reached at the negotiations on the swap of assets.

The two sides considered preparations for the South Stream project and decided to hold its joint presentation in Brussels.

Cooperation between Gazprom Neft and ENI was another item on the agenda.

Gazprom and ENI signed a strategic partnership cooperation agreement in November 2006. The agreement enabled Gazprom to start direct gas deliveries to the Italian market in 2007. The deliveries will grow to 3 billion cubic meters per year by 2010. The existent gas contracts were extended until 2035.

Gazprom signed a call option accord with ENI and Enel on April 4, 2007. The deal was about assets sold at the Yukos auction.

The consortium of ENI (60 percent) and Enel (40 percent) acquired 100 percent of Arktikgaz, 100 percent of Urengoil, 100 percent of Neftegaztekhnologia and 20 percent of Gazprom Neft.

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Closing oil prices, Mar. 26, 3 p.m. London

Brent crude oil: $103.72

West Texas Intermediate crude oil: $104.65

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(e-mail: energy@upi.com)