Selling own gas to the UK

October 1, 2001, 10:00 CEST

Gas will be sold by Statoil in the UK under its own name from Monday 1 October, when the existing Alliance Gas marketing company is wound up.

The transfer of this business to Statoil UK Gas marks the start of direct sales by the group of its own gas to Britain after Norway’s Gas Negotiating Committee (GFU) has been discontinued.

This government-organised body was previously responsible for all sales of Norwegian gas to other countries.

Under a deal with BP, Statoil is to deliver 1.6 billion cubic metres of gas to the UK every year from now until 2016.

“The change of name will have no consequences for our customers,” reports Rune Bjørnson, managing director of the Statoil UK subsidiary on London.

“They’ll enjoy exactly the same good service as when we were called Alliance Gas.”

Statoil will supply the same portfolio of buyers as the former company, and aims to expand this customer base.

According to Mr Bjørnson, selling its own product provides a better market base for the group as a secure supplier in a country with a rising demand for gas imports.

He adds that the change of name also indicates that the restructuring of Statoil’s British operations is almost completed.

The UK subsidiary has reduced its costs, stopped sales to small end users and opted to concentrate on serving large industrial customers.