Gazprom Marketing & Trading USA and Statoil commence series of transactions
Gazprom Marketing & Trading USA (GM&T USA) and Statoil ASA (Statoil) have signed a non-binding Memorandum of Understanding (MoU) for the finalization
Gazprom Marketing & Trading USA (GM&T USA) and Statoil ASA (Statoil) have signed a non-binding Memorandum of Understanding (MoU) for the finalization of a series of separate, mutually beneficial agreements between the two companies including regasification capacity at the Cove Point, Maryland receiving terminal for liquefied natural gas (LNG), gas sales in the USA and LNG imports to the USA.
Statoil and GM&T USA are now negotiating all terms and conditions of the final binding detailed agreements based on the MoU. The parties aim to finalize negotiations by first quarter 2010.
Under the terms of the MoU:
GM&T USA will, under a separate LNG throughput agreement, receive access to 50 million cubic feet per day (MMCFD) (approximately 0.5 billion cubic meters per year (“bcma”)) of regasification capacity at the Cove Point terminal starting in 2010. In addition, GM&T USA will in a separate throughput agreement receive long-term access to 200 MMCFD (2 bcma) of regas capacity at the Cove Point terminal for 18 to 20 years. GM&T USA will utilize the capacity to import LNG purchased from Gazprom Group’s world-wide portfolio of supplies. Both agreements also include the release to GM&T USA of take-away Cove Point Expansion pipeline capacity.
GM&T USA will purchase natural gas from Statoil at various trading hubs in the US market. This agreement, which commenced on November 1, 2009, includes a gas volume of 100 MMCFD (1 bcma) and will last more than five years.
Statoil will purchase, under a separate 20-year agreement, 200 MMCFD (2 bcma) of LNG from Gazprom Group’s global portfolio of LNG supplies for delivery in international waters to Statoil for regasification at the Cove Point terminal.
“The regasification agreements with Statoil will enable GM&T USA to import significant volumes of LNG purchased from Russia and other sources, both short and long term, and will provide a firm foundation for our long term LNG supply strategy. Our gas purchase agreement enables us to strengthen our North American marketing and trading operation, which we launched on October 1st, and provides us with gas supplies in areas of strategic importance,” said John Hattenberger, President of Gazprom Marketing & Trading USA.
“We are very pleased to add these North American deals to the long list of business transactions between our companies, and we look forward to additional business opportunities in the future.”
“The agreement is an important step in Statoil’s efforts to ensure supply for our LNG-import and regas capacity at Cove Point," said Irene Rummelhoff, senior vice president for International Gas Development in Natural Gas in Statoil.
"It further underlines our ability to develop our gas business in the US where we over a relatively short time have built a position in upstream conventional production, shale gas and the LNG-import terminal Cove Point.”
“It is also an important broadening of the successful commercial relationship between the companies in the Gazprom Group and Statoil.”