Gazprom and DONG Energy increase gas supply to Denmark via Nord Stream up to 2 billion cubic meters
RELEASE
Release
Gazprom and DONG Energy have signed a contract for the supply of additional Russian gas volumes to Denmark through the Nord Stream pipeline.
The contract specifies that DONG Energy starting from 2012 will additionally receive 1 billion cubic meters of gas per annum within a period of 18 years via the second string of the offshore gas pipeline.
Currently, DONG Energy has the contract for the supply of 1 billion cubic meters of gas via the Nord Stream.
“The new contract with DONG Energy providing for gas supply precisely through Nord Stream once again confirms the extraordinary importance and urgency of this project as a means of diversifying gas exports to Europe and enhancing reliability of the gas export infrastructure,” said Alexander Medvedev, Deputy Chairman of Gazprom’s Management Committee.
“We are very pleased that with this additional contract we are strengthening our long-term cooperation with Gazprom. Russian gas supplies are a part of our gas sourcing strategy which builds on diversifying delivery sources in order to sustain our energy security,” said Kurt Bligaard Pedersen, Executive Vice President in DONG Energy.
Background
Denmark produces oil and gas in the North Sea and is a net exporter of hydrocarbon feedstock.
DONG Energy is the largest energy company in Denmark. It was established in 2006 after a merger of six companies dealing with oil and gas production, electric power generation, as well as heat and electric power sales and distribution among Danish consumers.
These activities, energy trading inclusive, still undertaken by DONG Energy are broadened nowadays to several North European countries. The company has ownership interests in the Ormen Lange field and Langeled pipeline.
In 2006 Gazprom and DONG Energy signed the Agreement on Russian gas supplies to Denmark via the Nord Stream pipeline. Pursuant to the document, starting from 2011 Denmark is to annually purchase 1 billion cubic meters of Russian gas during a period of 20 years. The Agreement also provides for a possible substantial increase in annual supplies.