Nord Stream Decides on Second Pipe Tender

All Major Contracts for Nord Stream Project Closed

ZUG, Switzerland, January 22 - Nord Stream will commission Europipe (Germany), OMK (Russia)
and Sumitomo (Japan) with the supply of 1 million tons of steel pipes for the
construction of the second pipeline of the Nord Stream project. The contract
value is approximately 1 billion euros, of which German Europipe will be
awarded 65 percent, the Russian pipe company OMK 25 percent, and Japanese
Sumitomo 10 percent.

The tender award for the second 1,220 kilometres gas pipeline
from Vyborg in Russia to Lubmin in Germany will ensure timely delivery of the
pipes in line with the logistic requirements of the Nord Stream project. The
decision was made by the Shareholder's Committee today following thorough
evaluation of bids from German, Japanese and Russian companies.

"We are happy to have Europipe and OMK, the suppliers of the
first pipeline, as well as Sumitomo, a newcomer to our project, on board.
Sumitomo has a solid track record in offshore projects," says Henning Kothe,
Project Director at Nord Stream. "With 1 billion euros, the total volume of
the contracts is below the price level of the first line reflecting the
current market development of increased competition and more available
capacity. Three times the amount of steel pipes required was quoted."

All Major Contracts Finalised

The tender for line 2 was completely independent of the 2007
tender of the first line. Procurement of the steel pipes for the second line
was the last outstanding significant decision regarding the requirements for
the project as well as for the overall budget. With the contracts for the
second line, which are expected to be signed within the next weeks, Nord
Stream secures the pipes at the current price level. Delivery of the pipes
for the second pipeline is scheduled to start in May 2010.

World-Wide Call for Tender

The world-wide call for tender for the supply of pipes was
made in February 2009. Six manufacturers from Japan, Russia and Germany had
prequalified to participate and were invited to bid. Pre-qualification is
either by track record for experienced suppliers or by trial production. All
potential suppliers had to show they were capable of supplying
large-diameter, high-pressure-proof steel pipes for offshore use that met
international quality standards.

Project on Track

Construction of the first line of the Nord Stream Pipeline is
scheduled to commence on 1 April 2010; construction of line two is planned to
start in spring 2011. Nord Stream has received permits for its project by the
states whose waters it crosses (Russia, Finland, Sweden, Denmark, and
Germany) towards the end of 2009.

Notes to editors

Nord Stream is a natural gas pipeline that will link Russia
and the European Union through the Baltic Sea. The European Union's annual
natural gas imports in the year 2007 were approximately 312 billion cubic
metres (bcm) and are projected to increase to 516 bcm by the year 2030. This
means that by 2030, the EU's annual import needs will have increased by about
200 bcm (Source: IEA, World Energy Outlook, 2009). Nord Stream will meet
about 25 percent of this additional gas import requirement by connecting the
European gas pipeline network to some of the world's largest gas reserves.
The project will be an important contribution to long-term security of supply
and a milestone of the energy partnership between the European Union and
Russia.

Nord Stream AG plans to have the first of two parallel
pipelines operational in 2011. Each line is approximately 1,220 kilometres
long, providing a transport capacity of some 27.5 bcm per year. Full capacity
of about 55 bcm per year will be reached in the second phase, when the second
line goes on stream. This is enough to supply more than 26 million European
households.

Nord Stream AG is an international joint venture established
for the planning, construction and subsequent operation of the new offshore
gas pipeline across the Baltic Sea. Russian OAO Gazprom holds a 51 percent
stake in the joint venture. The German companies BASF/Wintershall Holding AG
and E.ON Ruhrgas AG hold 20 percent each, and the Dutch gas infrastructure
company N.V. Nederlandse Gasunie has a 9 percent stake.

    For further information, please contact:
    Ulrich Lissek, Communications Director
    Mobile: +41-79-874-31-58
    Irina Vasilyeva, Communications Manager
    Mobile: +7-916-133-87-81
    Email: press@nord-stream.com

For further information, please contact: Ulrich Lissek, Communications Director, Mobile: +41-79-874-31-58, Irina Vasilyeva, Communications Manager, Mobile: +7-916-133-87-81, Email: press at nord-stream.com