The FINANCIAL — Statoil has agreed an expansion of its long term gas supply agreement with the UK’s SSE.
Starting on 1 October 2015, the gas supplied from the six year deal, originally announced in October 2014, will increase from ca. 0.5 billion standard cubic metres per year (bcm/y) to ca. 2.5 bcm/y, according to Statoil.
In addition Statoil has a contract with SSE signed in October 2011 for the supply of 0.5 bcm/y to the St. Fergus terminal for the period October 2012 – October 2022.
“We are very happy to have made this agreement with SSE. Being the second largest supplier of gas and electricity in the UK, SSE is a significant player in a market that is very important to Statoil. The agreement takes our already established relations to the next level. The agreement with SSE is another confirmation of Statoil’s position as a long term reliable supplier of gas to the UK”, says Tor Martin Anfinnsen, senior vice president of Marketing and Trading in Statoil.
On 13 May Statoil and Centrica announced a gas supply agreement that takes Statoil’s total supply to Centrica for the 10 year period 2015 – 2025 up to 7.3 bcm/y.
Britain needs around 70 bcm of natural gas each year to heat homes and businesses and to generate electricity. Statoil’s long term supply agreements with SSE and Centrica represents almost 15% of UK gas demand and will deliver sufficient gas to meet the needs of nearly 8.5 million British homes every year.
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