Statoil and BP agree long-term Norwegian gas contract
9 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.
Based on current market prices the deal would be worth about $2bn, but Statoil said prices would be linked to changes in energy prices over time.
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 will take delivery of the gas at the national balancing point, the UK's notional exchange location for gas transactions. 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.
