Entering the LNG market
The signing of the contracts for the Snøhvit gas means that Statoil is making its debut in the LNG (liquefied natural gas) market.
“This is a strategically important step for Statoil. We will build on the extensive experience and expertise the group already possesses as a marketer of oil and gas,” reports Otto Granli, vice president for gas sales and shipments in the Snøhvit project.
Statoil is one of the largest exporters of crude oil in the world, and an important seller of gas to Europe.
The LNG contracts that were signed with the American El Paso Global LNG Company and the Spanish Iberdrola S.A. on 18 October, mean that Statoil will sell almost 1.3 billion cubic metres of its own gas per year.
In addition, the group will sell 1.7 billion cubic metres of gas on behalf of the Norwegian state.
“We are looking forward to cooperating with our new customers. Both the Spanish and the American markets have potential for growth in the years ahead,” adds Mr Granli.
Statoil is already in place in these energy markets. The group exports crude oil and petroleum products to the USA, and also sells gas and liquefied petroleum gases (LPG) to Spain.
A pre-condition for the LNG agreements is that the Storting (parliament) and the other relevant authorities approve the Snøhvit project on the terms the licence has provided.