Germany's largest importer of natural gas E.ON Ruhrgas AG said Friday that OAO Gazprom (GAZP.RS), its largest supplier, partially dropped the oil-price link of gas delivery contracts, following months of negotiations between the companies.
A company spokesman said the unit of E.ON AG (EOAN.XE) and Gazprom have instead agreed to index gas prices for some of their existing contracts to the spot price level.
"We have agreed on the corner stones, but are still in the process of discussing details with Gazprom," the spokesman said.
"In future we will purchase an increased share of gas that is spot price indexed from Gazprom," he added.
The spokesman further said that the agreement to link some of the gas delivery contracts to the spot market price level would give E.ON more flexibility in terms of gas procurement and in supplying its customers.