Wingas purchases Hydro's stake in HydroWingas
Hydro has accepted an offer to sell its 50 percent share in the gas company HydroWingas to the company's other shareholder, Wingas. Hydro will continue to sell natural gas on the UK gas exchange, the National Balancing Point (NBP), and directly to major participants in the UK gas market.
HydroWingas is a company with its main focus on sales of gas to the industrial market segment in the UK.
The bulk of Hydro’s gas is currently sold to European continental customers on long-term contracts. An ever-increasing share of Hydro’s gas has been sold on short-term contracts in recent years and the UK gas market has grown in importance. When the Ormen Lange field comes on stream it is expected that an even greater share of Hydro’s natural gas can be sold to the UK, either directly to market participants or via the NBP.
Hydro’s gas exports have doubled since 2001, and the company exported more than 10 billion cubic meters of natural gas in 2006. When Ormen Lange reaches plateau production in 2010, Hydro’s production will be approximately 15 billion cubic meters per year, from the fields on the Norwegian Continental Shelf in which the company holds licenses.
The sale will be accomplished as soon as the EU Commission has given its approval.