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34

Norwegian Statoil concluded gas transportation agreements in the US

Statoil said Tuesday it has entered into transportation agreements in the US ensuring the right to transport and deliver natural gas produced in the Northern Marcellus shale gas area of Pennsylvania (PA) to the New Jersey and New York City areas.

 

Statoil said Tuesday it has entered into transportation agreements in the US ensuring the right to transport and deliver natural gas produced in the Northern Marcellus shale gas area of Pennsylvania (PA) to the New Jersey and New York City areas. Statoil's US subsidiary Statoil Natural Gas (SNG) has concluded transportation agreements with Tennessee Gas Pipeline (a subsidiary of El Paso Corp), and Texas Eastern Transmission (a subsidiary of Spectra Energy Corp).  Contracts ensure Statoil the right to transport up to 2B cubic metres (bcm) per year/200,000 mcf/day directly from the Northern Marcellus production area to New York City and the surrounding areas.

 

"We expect that this will create attractive sales opportunities in New York City, New Jersey and surrounding areas in what is regarded the most attractive gas market in the US," says Runne Bjornson, executive vice president for Natural Gas.  Transportation capacity contracts are expected to commence in November 2013 after an anticipated project permitting and construction period. Statoil's Marcellus partner Chesapeake Energy Corporation through its subsidiary Chesapeake Energy Marketing has reserved 4.2Bcm (419,000 mcf/day) and Statoil 2B cm (200,000 mcf/day) in the case of the Tennessee project, and 4.3Bcm (430,000 mcf/day), Statoil 2B cm (200,000 mcf/day), and Consolidated Edison 1.7B cm (170,000 mcf/day) in the case of the Texas Eastern project. Consolidated Edison is a local distribution company.


Statoil acquired a 32.5% interest in Chesapeake's Marcellus shale gas acreage in November 2008. Statoil's equity production from the Marcellus shale gas play is expected to increase to at least 50,000 boepd in 2012 (approx. 3B cm) and at least 200,000 boepd (approx. 10B cm) after 2020.

Source : Dow Jones