Statoil and British Gas Trading Ltd
, a wholly owned subsidiary
of Centrica (CPYYY)
, have signed a gas sales contract for supplies of five billion cubic metres of natural gas
Supplies will start on October 1, 2005 and run for 10 years.
This is Statoil's largest sale since the Troll gas sales agreement
in 1986 on the basis of annual volumes. The contract reinforces Statoil's position as the largest importer of gas to the UK.
Peter Mellbye, executive vice president for Statoil's Natural Gas
business area comments:
"The contract secures a good commercial outlet for Statoil's gas and
is therefore key to the future development of new gas fields off
Norway to increase supplies into Europe."
"We are very satisfied with the gas contract," says Rune Bjørnson,
managing director of Statoil UK
. "With this new contract Statoil will
increase the supply of gas to meet the UK's growing energy needs. The
UK is a target market for Statoil due to the increasing need for gas
supply. Over the last year, Statoil has increased short term sales of
gas to the UK, and in June 2001 Statoil signed a contract with BP (BP)
supplies of 1.6 bcm per year over fifteen years.
"Statoil looks forward to cooperating with British Gas Trading. The
deal is beneficial for both parties; flexibility with regard to
sourcing the gas, including being able to source it in the UK traded
market, increases Statoil's commercial opportunities. The contract
also enables us to supply gas to the largest supplier in the domestic
market segment where we are not active. For British Gas Trading it
will provide a stable and reliable supply of gas in coming years,"
concludes Mr Bjørnson. The volumes will be delivered at the National
Balancing Point, the UK's notional gas trading point.
The contract is pending approval by Statoil's board of directors.