The shareholders of the Nord Stream pipeline project, which will transport natural gas from Russia to western Europe via the Baltic Sea, are in talks with GDF Suez SA (GSZ.FR) over the French company entering the consortium.
A spokesman for Russian natural gas monopoly OAO Gazprom (GAZP.RS), which leads the consortium with a 51% stake, Tuesday said talks are underway with GDF, without further elaborating.
Two people familiar with the matter told Dow Jones Newswires that E.ON Ruhrgas, the natural gas unit of E.ON AG (EOAN.XE), and BASF SE's (BAS.XE) Wintershall AG are both willing to sell 4.5% each to GDF.
One of the persons said negotiations with GDF are in the beginning stages, and the main question is what GDF is willing to offer in return.
E.ON Ruhrgas and Wintershall currently each own 20% stakes in Nord Stream. The remaining 9% is owned by Dutch gas firm Nederlandse Gasunie NV.
E.ON Chief Executive Wulf Bernotat earlier this week was quoted as saying by German magazine Wirtschaftswoche that the German utility could offer a 4.5% stake to GDF.
Last month, Wintershall Chief Executive Reinier Zwitserloot also said the company may sell some of its shares in Nord Stream to GDF.
The consortium is looking for a further partner to raise public acceptance for the project, which has been criticized by environmental groups and several states bordering the Baltic Sea.
E.ON and Wintershall have previously sold 4.5% each to Gasunie in a similar transaction.
Nord Stream will consist of two pipelines stretching around 1,200 kilometers beneath the Baltic Sea, bypassing traditional routes such as the Yamal pipeline through Poland or the Transgas pipeline through the Ukraine.
The first pipeline is expected to be operational in 2011 and will deliver about 27.5 billion cubic meters a year. The second pipeline is due to be completed in 2012 and will increase the total capacity to around 55 billion cubic meters a year.
Construction of Nord Stream is estimated to cost EUR7.4 billion.