RIA Novosti reported that Gazprom has signed a memorandum with Gaz de France Suez on the French utility participation in the Nord Stream gas pipeline project.

The companies said in a joint statement that the deal which will give GDF Suez a 9% stake in the project to build a pipeline along the bed of the Baltic Sea is expected to be closed by April.

The 1,220 kilometers long Nord Stream pipeline will eventually pump 55 billion cubic meters of gas per year to Western Europe, bypassing traditional transit nations.

Nord Stream will have two pipelines, each with a capacity of 27.5 billion cubic meters a year, on the Baltic Sea floor stretching from Russia Vyborg near the Finnish border to Greifswald on Germany coast.

Construction of the first pipe is to begin in April, with pumping of gas expected to start in late 2011, while the second is to come online in 2012.

Gazprom currently holds a 51% stake in Nord Stream AG, the project operator. Germany Wintershall Holding and E.ON Ruhrgas control 20% each and the remaining 9% belongs to Holland Gasunie.

GDF Suez is expected to join Nord Stream through the reduction of the stakes held by Wintershall Holding and E.ON Ruhrgas.

The statement said gas supplies for GDF Suez via the Nord Stream could reach 1.5 billion cubic meters annually from 2015.

(Sourced from RIA Novosti)