Statoil quadruples LNG capacity in USA

Tuesday, June 15, 2004
Agreements concluded with America's Dominion energy company have secured Statoil (OSE: STL, NYSE: STO) a fourfold increase in its access to liquefied natural gas capacity in the US market.

This will be achieved by expanding the Cove Point LNG terminal in Maryland and associated pipeline transportation capacity on the American east coast.

"These agreements give us unique market access to the north-eastern USA, where gas demand is high and the market robust and liquid," says Peter Mellbye, executive vice president for Natural Gas in Statoil.

"Realising them represents an important building block in our long-term LNG strategy."

The deals give Statoil access to terminal, storage and pipeline transportation totalling about 10 billion cubic metres of gas per year (1.05 billion cubic feet per day).

Running for 20 years from 2008-09, this compares with its present annual capacity at Cove Point of 2.4 billion cubic metres (0.25 billion cubic feet per day).

Statoil will make monthly payments which total about 10-15 per cent of the sales value for the increased LNG import capacity.

Dominion's expansion plans embrace two pipeline projects as well as capacity increases at the terminal. Collectively, this investment will give Statoil access to substantial natural gas markets along the US north-east coast.

"There are only four LNG terminals in the USA today, and Cove Point's location is strategically important for two reasons," says Mr Mellbye.

"One relates to the sailing distance for LNG from our Snøhvit development in the Barents Sea and possible future LNG projects.

"The other is the terminal's proximity to important end-user markets with a big demand for natural gas around Washington DC and New York."

After Snøhvit comes on stream, Statoil will be importing 2.4 billion cubic metres of natural gas per year (0.25 billion cubic feet per day) through Cove Point.

The group is buying LNG from other producers until its own supplies become available from the Barents Sea field. In addition, the capacity increase will secure access to the US market for new LNG projects both on the Norwegian continental shelf and in other parts of the world.

The terminal expansion and pipeline projects are conditional on the approval of the US authorities.

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

Philippine, Vietnamese Troops Together on Disputed Island

Vietnamese and Philippine troops played soccer and sang karaoke on a South China Sea island on Wednesday in a sign of the growing security ties between the two

New MD for Glander Int'l Bunkering (India)

Glander International Bunkering is proud to announce that Ajay Menon has been appointed as the Managing Director of Glander International Bunkering (India) Private Limited.

ARENA Funding Helps CSIRO set-up New Solar Lab.

CSIRO is set to increase confidence in large scale solar by more accurately predicting how different solar photovoltaic (PV) systems will perform on Australian shores.

 
 
Maritime Security Naval Architecture Navigation Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2013 sec (5 req/sec)