In cooperation with the world’s largest natural gas producer, OAO Gazprom, we operate a second business sector, Natural Gas Trading, in addition to the exploration and production of oil and gas. We supply the German and European gas markets through several joint ventures. The biggest of them is WINGAS GmbH & Co. KG. For years, this company has achieved increases in sales that have consistently beaten average market growth. The long-distance network of WINGAS TRANSPORT, which is over 2,000 kilometers long, connects the natural gas markets in Germany and Western Europe with the natural gas infrastructure that stretches through Eastern Europe and the Russian Federation all the way to the gas wells in Siberia. In October 2007, BASF and Gazprom completed an exchange of company shares, which increased Gazprom’s interest in WINGAS GmbH & Co. KG from previously 35 to 50 percent less one share. In view of the continuing growth in joint tasks and to support the ever intensifying cooperation, WINGAS opened its own local office in Moscow in 2007.

The joint targets we have set ourselves with our partner Gazprom since 1990 include securing the increasing market demand for natural gas, achieving new competitive market positions, and reinforcing the international natural gas transport system. Around one third of all gas reserves known today are found in Russia. Our partnership with Gazprom gives us secure access to these important resources. Gazprom’s market proximity in Europe in turn strengthens its position as a major player in the European gas industry. This creates a win-win situation for both partners, and in particular for the customers of WINGAS (municipal utilities, industrial facilities, and power plant operators), for which WINGAS provides even better supply security on favorable terms and conditions, due to short supply chains from source to customer. In addition, the WINGAS companies market natural gas transport and storage, as well as fiber optic capacity for the transmission of data.