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Selling more gas to UK

August 29, 2003, 01:05 CEST

A three-year gas sales contract covering the delivery of two billion cubic metres per annum from 1 October 2003 has been secured by Statoil from British Gas Trading.

The buyer company is a wholly-owned subsidiary of the Centrica group. Deliveries will be made to the national balancing point in the UK gas transport system.

“We’re very pleased to have signed this deal,” says Peter Mellbye, executive vice president for Statoil’s Natural Gas business area.

“It reinforces the relationship we established with Centrica last year.”

Statoil can decide for itself where to obtain the gas.

The new agreement helps to achieve better utilisation of Statoil’s gas transport capacity to the UK.

British Gas Trading awarded the group a contract last year to deliver five billion cubic metres of gas annually over a decade from 1 October 2005.

In addition, Statoil sells just over four billion cubic metres per annum to BP and industrial companies in Britain, and to an Irish power station.

“All these deals help to confirm our position in the UK market,” says Mr Mellbye.

Britain is a key outlet for Statoil because of the country’s growing need for gas and its proximity to the Norwegian continental shelf.