By Monica Houston-Waesch
FRANKFURT--BASF SE said it has signed a memorandum of
understanding with Gazprom OAO to expand the Nord Stream pipeline
bringing Russian gas to Europe, bypassing Ukraine.
The expansion will include two pipelines with the capacity to
transport an additional 55 billion cubic meters to Germany, BASF
said Friday.
The expansion will reduce Russia's reliance on sending gas to
Europe via Ukraine. Disputes between the two countries have caused
cuts in gas deliveries to the region twice in recent years.
BASF is joining other European companies in the expansion. In
June, Gazprom said it signed a preliminary deal with Royal Dutch
Shell PLC, E.ON SE and Austria's OMV AG to double the capacity of
the pipeline that runs from Russia to Germany via the Baltic
Sea.
"BASF and Gazprom have been cooperating for more than 20 years
on the construction of pipelines to ensure secure supplies of
Russian gas to Europe," said Hans-Ulrich Engel, a BASF executive
board member.
The current pipeline is only running at around two-thirds
capacity due to EU competition rules.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
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