Wolfgang Ruttenstorfer, CEO of OMV, commented: "This contract is another milestone in the almost 40 years of cooperation between OMV and Gazexport. It is important for securing a long-term supply of natural gas for Europe. The deal will also increase the significance of OMV's Baumgarten gas-distribution station as a key European natural gas hub." OMV Gas already transports approximately 50 billion cum/yr of gas through its Austrian pipeline network. Of this amount, the transit volume for Western, Eastern, and Southern Europe is around 43 billion cum/yr, making up approximately a third of all Russian gas exports to Europe. In the new contract, Gazexport authorizes OMV to transport approximately 4.4 billion cum/yr of Russian gas up to 2027, from the Slovakian border, near Baumgarten, through Austria to the German border near Überackern (Burghausen). A massive expansion of the WAG system will be needed to achieve this, and OMV already has plans to invest around E260 million in the project. The expansion will be carried out in three stages and will increase the annual capacity of the pipeline from 7 to 11 billion cum/yr. Construction will begin this year, and the first stage of expansion should be completed by the autumn of 2007, bringing an additional capacity of 1.9 billion cum/yr into operation. The second stage of expansion is expected to be completed in 2008, adding a further annual capacity of 0.6 billion cum The last stage should be finalized by 2011, contributing the final capacity of 1.44 billion cum/yr.