Fluxys and Gazprom Export will examine the options for Gazprom Export to reserve long-term storage capacity at Fluxys' underground storage site in Loenhout. The two companies have signed a Memorandum of Understanding to that effect in parallel with Russian President Dmitry Medvedev's visit to Belgium. The Belgian government and the government of the Russian Federation both support the project. In 2007 Fluxys started works to increase capacity at the underground storage facility in Loenhout. Over a period of four years (2008-2011), workable storage capacity is being gradually increased by 15% from 600 to 700 mcm. In the Memorandum of Understanding Fluxys and Gazprom Export agree to investigate the economic and legal feasibility of Gazprom Export reserving long-term storage capacity. Talks will be conducted with Belgian federal regulator CREG to see how such a capacity reservation can be implemented in the framework of an open, transparent procedure. Under a long-term contract, in case of emergency Gazprom Export will be providing its natural gas that it has in storage directly to Fluxys. In that way, the agreement would work in favour of both parties: Fluxys would have immediate emergency access to additional volumes of Gazprom Export's natural gas as a strategic reserve for the Belgian market, and Gazprom Export would have a buffer capacity for its supplies to North-Western European markets.
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