Norway-based Statoil has signed a ten-year gas sales agreement with Wintershall to supply a total of 45 billion cubic meters of gas to markets in Germany and north-west Europe.
Under the agreement, gas will be supplied from the Norwegian Continental Shelf through existing pipeline, while most of the deliveries will go to Germany, the second largest gas market in Europe, exhausting about 80 billion cubic metres of natural gas per year.
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Pricing of gas will be based on competitive terms related to German and NW European hubs.
Statoil president and CEO Helge Lund said that the recent agreement proves the competitiveness of Norwegian natural gas in the German market.
"Natural gas abundance and established infrastructure provides long term security of supply, and as the least CO2 intensive fossil fuel it can contribute to further reduction of German CO2 emissions," said Lund.
Wintershall CEO Rainer Seele said that the agreement with Statoil, Germany’s long-term and reliable energy partner, is an important milestone achieved by the company.
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By GlobalData"For us this means that we can also use the volumes we produce from the North Sea in Europe in the future without having to expand our own infrastructure," Seele added.
Statoil supplies gas to the German market through the Europipe I and II and Norpipe pipelines that landfall at Dornum and Emden in Northern Germany.
Image: The processing plant at Kollsnes near Bergen. Photo: Courtesy of Helge Hansen
