Gazprom pushes for Romanian entry through E.ON

Russian giant Gazprom is trying to regain the ground it conceded last year when it lost out in the bidding process for natural gas distributor Distrigaz Sud. It now plans to enter Romania through its global partnership with German group E.ON, the owner of Distrigaz Nord.

“We have an opportunity to enter assets bought by E.ON in Romania,” Alexander Medvedev, a Gazprom deputy chief executive, said on Monday in Moscow, quoted by Bloomberg. “We have an opportunity to defend our interests not only by entering any assets but also through contract relations.”

Gazprom is in talks with E.ON over possible joint projects in gas production, marketing and power generation.

E.ON, which is one of the largest utility groups in the world, acquired 51% in gas distributor Distrigaz Nord through its Ruhrgas division last year. The deal was worth some 304 million euros.

At the same time, they bought 51% in electrical power distributor Electrica Moldova through another privatisation worth around 100 million euros. Both transactions are to be finalised soon.

Gazprom entered the race for both natural gas companies, facing competition from Ruhrgas for Distrigaz Nord in the initial phase of the process. In the end, Gazprom submitted a bid for Distrigaz Sud, which was finally awarded to Gaz de France.

E.ON and Gazprom officials had made no comment on the partnership by the time this story went to press.

Sources close to the privatisation process, however, say E.ON will not be allowed to sell shares in either Distrigaz Nord or Electrica Moldova for some time, due to certain clauses in the privatisation contracts.

At the same time, Gazprom”s interest in E.ON”s Romania operations could be connected to the establishment of a joint venture to import natural gas from Russia by Distrigaz Nord, or plans for a joint bid in the privatisation of natural gas producer Romgaz.

E.ON recently signed a memorandum of understanding with Gazprom officials whereby the German group will be able to acquire 25% in a gas field in Western Siberia operated by Gazprom. In exchange, the Russian group will have an equal interest in E.ON”s European operations.

Ruhrgas” Romanian business also includes a 28% stake in private natural gas distributor Congaz Constanta and a stake in thermal power operator Colonia Cluj.

With gas and power distribution companies part of its portfolio, E.ON has become the first foreign private group to form an integrated business on the Romanian market, which could help it become the first “multi-utility” supplier in the country.

Gazprom is Europe”s leading natural gas supplier. Gas supplied by Gazprom covers about one third of the demand in Romania.