Gazprom OAO (GAZP.RS) and GDF Suez SA (GSZ.FR) are in talks over an asset swap that would allow the Russian gas monopoly to expand its position on the German gas market and open the Nord Stream gas pipeline to the French utility, German daily Handelsblatt reports Tuesday, citing unidentified sources.
Gazprom is seeking to acquire GDF Suez's 5.3% stake in eastern Germany's largest importer of natural gas, VNG Verbundnetz Gas AG, the newspaper reports, citing people familiar with the matter.
In return, GDF Suez would receive a stake in the Nord Stream pipeline, which will supply Russian gas to Germany via the Baltic Sea, bypassing transit routes through Belarus and the Ukraine, the report says.
A spokeswoman for GDF Suez declined to comment and Gazprom wasn't immediately available to comment.
The deal would give Gazprom and its partner Wintershall AG--the upstream oil and gas unit of BASF SE (BAS.XE)--a blocking minority of more than 25% in VNG.
Gazprom and Wintershall are operating a 50-50 joint venture called Wingas GmbH, which is Germany's second largest importer of gas behind E.ON AG (EOAN.XE).
The asset swap would be a blow to German utility EnBW Energie Baden-Wuerttemberg AG (EBK.XE), which wants to acquire around 48% of VNG from EWE AG. EnBW's plans have been fiercely opposed by existing VNG shareholders, including Wintershall, Gazprom and VUB, a group of 12 local utilities that own 25.8% of VNG.