Statoil, SSE in gas supply deal extension
Statoil informed it has agreed an expansion of its long-term gas supply agreement with the UK’s SSE.
Starting on October 1, 2015, the gas supplied from the six-year deal, originally signed in October 2014, will increase from ca. 0.5 billion standard cubic metres per year to ca. 2.5 bcm/y, Statoil said in a statement.
In addition, Statoil has a contract with SSE signed in October 2011 for the supply of 0.5 bcm/y to the St. Fergus terminal for the period October 2012 – October 2022.
On May 13 Statoil and Centrica signed a gas supply agreement that takes Statoil’s total supply to Centrica for the 10-year period 2015 – 2025 up to 7.3 bcm/y.
Britain needs around 70 bcm of natural gas each year to heat homes and businesses and to generate electricity. Statoil’s long-term supply agreements with SSE and Centrica represent almost 15% of UK gas demand and will deliver sufficient gas to meet the needs of nearly 8.5 million British homes every year.