Statoil inks 3-yr LNG purchase deal to supply Cove Point

09 September 2003 18:33  [Source: ICIS news]

LONDON (CNI)--Statoil said Tuesday it has signed a three-year purchase deal for liquefied natural gas (LNG) from Tractabel LNG North America with the LNG to be delivered to Statoil at Cove Point, Maryland.

Norwegian energy and petrochemicals group Statoil is to buy 1bn m3 of natural gas per year until 2006 from Tractabel. Statoil signalled its intention to strike further deals with LNG producers until its Barents Sea development comes onstream, which should see Cove Point receive 2.4bn m3 of gas per year from 2006 until 2023.

High gas prices in the US have made the long-distance supply project commercially viable, the company said.

Recently, Spanish-Argentinian energy and chemicals group Repsol-YPF made its first LNG delivery to Statoil's new US regassification plant at Cove Point. Statoil has leased a third of the capacity at the Cove Point LNG terminal. Cove Point re-opened in August after being mothballed since 1980, and other LNG capacity is split between BP and Shell.

By: Patrick Reynolds
+44 208 652 3214

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