Algerian state-owned oil and gas company Sonatrach and Norway's
StatoilHydro Saturday signed an agreement sealing a long-term partnership at
the Cove Point receiving terminal in the US covering the marketing of a total
3 billion cubic metres of LNG, the companies said Saturday.
Under the terms of the contract, Sonatrach will have access to 2 billion
cu.m/yr of regas capacity at Cove Point for 15 years from 2009.
As part of the agreement, StatoilHydro will also buy 1 billion cu.m/d of
LNG between 2009 and 2014 ex-ship.
The agreements signed March 1 are extensions of an existing agreement
concluded with what was then Statoil in 2003 prior to its merger with Norsk
Hydro.
The contracts were signed by Chawki Rahal, vice president for marketing
at Sonatrach, and Kare Rosandhaug, StatoilHydro's country president for
Algeria in the presence of Sonatrach CEO Mohamed Meziane and Norwegian
ambassador Kristian Pederson.
Sonatrach's Meziane said the agreement would allow the company to
"reinforce and consolidate its position in the Atlantic Basin gas market after
booking capacity at the isle of Grain in the UK and opens the opportunity for
arbitrage in other markets."
StatoilHydro Saturday signed an agreement sealing a long-term partnership at
the Cove Point receiving terminal in the US covering the marketing of a total
3 billion cubic metres of LNG, the companies said Saturday.
Under the terms of the contract, Sonatrach will have access to 2 billion
cu.m/yr of regas capacity at Cove Point for 15 years from 2009.
As part of the agreement, StatoilHydro will also buy 1 billion cu.m/d of
LNG between 2009 and 2014 ex-ship.
The agreements signed March 1 are extensions of an existing agreement
concluded with what was then Statoil in 2003 prior to its merger with Norsk
Hydro.
The contracts were signed by Chawki Rahal, vice president for marketing
at Sonatrach, and Kare Rosandhaug, StatoilHydro's country president for
Algeria in the presence of Sonatrach CEO Mohamed Meziane and Norwegian
ambassador Kristian Pederson.
Sonatrach's Meziane said the agreement would allow the company to
"reinforce and consolidate its position in the Atlantic Basin gas market after
booking capacity at the isle of Grain in the UK and opens the opportunity for
arbitrage in other markets."
