Statoil has announced that it has signed a long term deal for the delivery of liquid natural gas (LNG) to end users on the US market.
The Norwegian state oil company has entered into the agreement with Tractebel LNG North America.
The contract implies that Statoil shall purchase one billion cubic metres og natural gas over a three-year-period, from 2003 to 2006. From then on, Statoil will take delivery of LNG from the Norwegian Snoehvit field in the Barents Sea for the next 17 years.
Statoil shall deliver the LNG to the Cove Point Termional in Maryland, which in turn will carry out the distribution to the US end customers, says Otto Granli, Statoil’s Director of LNG distribution.
-The high gas prices make it commercially advantageous for us to sell LNG to the US despite the long transport distance involved, Granli says.
The US already imports LNG from Nigeria, Trinidad and Tobago, Algeria and from producers in the Middle East.