Statoil and Centrica have entered into a long term gas sales agreement for the delivery of 5 billion m3/yr 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
UK Prime Minister David Cameron said, “I warmly welcome this announcement, which underlines the strength and depth of the partnership that the UK & Norway enjoy. Gas plays a central role in powering our economy, and will continue to do so for decades to come. Today’s agreement will help to ensure the continued security and competitiveness of gas supplies to Britain, from a trusted and reliable neighbour."
5 billion m3/yr represents approximately 5% of the total gas consumption in the UK, and corresponds to the gas consumption of 3.5 million UK homes or the gas needed to fuel nine to ten 400MW gas power plants. The UK market consumes around 98 billion m3/yr and is the largest and most liquid gas market in Europe.
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.