Statoil and Wintershall have entered into a 10-year sales agreement for the delivery of 45 billion cubic meters (Bcm) of gas to Germany and other Northwest European markets.
"This strategic agreement demonstrates the continued competitiveness of Norwegian natural gas in the German energy mix," said Statoil's President, Helge Lund. "Natural gas abundance and established infrastructure provide long-term security of supply, and, as the least CO2-intensive fossil fuel, [gas] can contribute to further reduction of German CO2 emissions. We see this agreement as a confirmation of how important natural gas will be in shaping the long-term German energy system."
"The agreement with Statoil, a long-term and reliable energy partner with Germany for decades, is a significant milestone for Wintershall, said Wintershall CEO Rainer Seele. "For us, this means that we can also use the volumes we produce from the North Sea in Europe in the future without having to expand our own infrastructure."
Germany consumes about 80 Bcm/yr of natural gas and is the second-largest gas market in Europe. Up to 5 Bcm/yr is a substantial volume, representing more than 6% of total German gas consumption. The volume corresponds to the annual gas usage of more than 2 million German homes.
According to the companies, the gas is priced at competitive terms related to German and Northwest European hubs. The gas will be delivered through existing pipeline infrastructure from the Norwegian Continental Shelf, with the bulk of the deliveries going to Germany.