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Gazprom, VNG to set up JV to build gas storage facility


MOSCOW, May 19 (RIA Novosti) - Gazprom and Germany's Verbundnetz Gas (VNG) plan to establish a joint venture to build a 350-million-euro gas storage facility in eastern Germany, the Russian energy giant said on Tuesday.

The agreement was signed between Gazprom's deputy CEO Alexander Medvedev and Verbundnetz Gas CEO Klaus-Ewald Holst in Berlin on Tuesday, the company said in a statement.

The storage facility will be built in the town of Bernburg, in the federal state of Saxony-Anhalt. Work is due to begin on the first underground storage space in 2009. When it is completed in 2022, the facility will have an active storage capacity of 510 million cubic meters.

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