Russia's OAO Gazprom (GAZP.RS), the world's largest gas producer, has agreed with Verbundnetz Gas AG, a German importer and supplier of natural gas to major consumers, to build and operate an underground gas storage facility in Germany's Saxony-Anhalt region, Gazprom said Wednesday.
Over the coming 14 years Gazprom and Verbundnetz Gas plan to jointly invest $545 million, the company said.
The startup of the first new underground gas storage facility, which when finished will have an active storage volume of 510 million cubic meters of gas, is scheduled for next year.
"The participation of Gazprom in underground gas storage projects in Germany is a concrete step towards the implementation of the company's strategy to promote the energy security of Europe and enhance the reliability of supplies to European customers," Alexander Medvedev, Chief Executive of Gazprom's export arm, said.