Statoil and Centrica sign gas sales agreement
Posted: 21 November 2011
Statoil and Centrica signed a long term gas sales agreement for the delivery of 5 billion cubic metres (bcm) per year from 2015 to 2025 to the UK market.
This new long term gas sales agreement follows an existing agreement between Statoil and Centrica that expires in 2015.
"The agreement demonstrates that natural gas is set to play an important role in the UK’s long term energy mix," said Statoil’s President and CEO Helge Lund.
"Natural gas has all the features needed for the UK to reach its long term energy policy goals of affordability, security of supply and CO2 emissions reduction.
"Today’s announcement is of high strategic importance as two of the UK’s key energy players are taking on long-term commitments in order to contribute to UK’s energy security. The agreement also shows the competitiveness of Statoil’s natural gas portfolio on the NCS."
The gas under the contract is linked to indices at the National Balancing Point (NBP), the virtual price setting point in the UK gas market. The volumes will be delivered through existing pipeline infrastructure from the Norwegian Continental Shelf.