Statoil and BP Agree Long-term Norwegian Gas Contract For UK

11-Jul-2001

Statoil and BP have signed the first Norwegian long-term natural gas sales contract after the abolition of the Norwegian gas sales committee, GFU. It is also the first significant contract for gas supplies to the UK from the Norwegian continental shelf since the Frigg contract. The 15 year contract covers deliveries of 1.6 billion cubic metres of natural gas per year into the UK, starting 1 October 2001. The volume represents approximately 1.5 per cent of total current UK demand. Rune Bjørnson, who was recently appointed managing director of Statoil UK, commented on the deal saying: "Statoil is very satisfied with this contract. The UK gas market is attractive for us because of its size, the proximity to our reserves and the market growth potential. This contract demonstrates our ambition to respond to increasing UK demand with secure supplies of gas." Statoil has been present in the British gas market since the opening of the Frigg field in 1977. For the last ten years, Statoil has also been an active gas marketer and trader in the UK. BP's UK Gas and Power managing director, Peter Mather, said: "This is an excellent deal which will make an important contribution to UK energy supply as demand for cleaner, natural gas grows. It underlines BP's commitment to meeting the long-term energy needs of customers and complements our continuing investments to find and develop further North Sea gas reserves, in the UK, Norway and the Netherlands. “It is also significant in that it demonstrates BP's ability to enter into long-term gas supply contracts to meet the short-term needs of customers in a highly competitive, spot driven UK market. We look forward to working with Statoil in the years ahead. " BP will take delivery of the gas at the national balancing point, the UK's notional exchange location for gas transactions. Hence the supply will be facilitated by, but not solely dependent on the new trunk pipeline, Vesterled. The pipeline will connect the UK market to the integrated Norwegian gas supply system.

https://www.chemeurope.com/en/news/3856/statoil-and-bp-agree-long-term-norwegian-gas-contract-for-uk.html