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Oil giant Gazprom and E.ON Ruhrgas AG signed an agreement on Tuesday to extend current contracts for natural gas supplies by 15 years and also a contract for additional gas supplies through the North European Gas Pipeline, Gazprom said in a press release.

Under the extended contracts from 2020 to 2035, annual supplies of gas will amount to about 20 billion cubic meters, and total supplies up to 300 billion cubic meters.

The contract to supply gas through the North European Gas Pipeline calls for annual supplies of up to 4 billion cubic meters. Total supplies from 2010-2011 to 2036 will amount to up to 100 billion cubic meters.

Gazprom Deputy CEO Alexander Medvedev and E.ON Ruhrgas CEO Burckhard Bergmann signed the documents.

E.ON also said that it is taking part in the construction of two new natural gas pipelines that will connect the North European Gas Pipeline with the existing gas supply system in Germany.

"These contracts strengthen our partnership with the world's largest producer of natural gas," Bergmann was quoted in the press release as saying.

"At the same time, we are compensating for a drop in supplies from Western European sources and are ensuring additional volumes of gas for the growing European market," he said.

The North European Gas Pipeline will have a capacity of 55 billion cubic meters. Its first line, which is due to begin operating in 2010, will have a capacity of 27.5 billion cubic meters.

The first contract for the delivery of gas via the North European Gas Pipeline was signed with WINGAS GmbH, a gas trading joint venture between Gazprom and Germany's BASF, in 2005. The 25- year deal envisions the delivery of 9 billion cubic meters of gas.