Shell Begins Direct Gas Exports from Denmark to Netherlands

Shell Olie- og Gasudvinding Danmark BV announced the first ever direct export of natural gas from Denmark to the Netherlands, through a new 100 kilometer subsea pipeline.

The pipeline creates new markets for Danish gas in North West Europe, contributes to a more competitive energy market, and improves security of supply.

The 26 inch pipeline, which represents an investment of over $200 million, runs from the Maersk-operated Tyra West platform on the Danish continental shelf under the sea to the NAM-operated F3-FB platform on the Dutch continental shelf. From there, gas is fed into the NOGAT pipeline system to Den Helder on the Dutch coast.

Tom Botts, Chief Executive Officer of Shell Exploration and Production in Europe, said today : "This project, which involved staff from EP Europe and the downstream gas business Shell Energy Europe, is an example of how cooperating across borders can create opportunities and value. Building a connecting subsea pipeline allows us to use existing infrastructure in a new way to the benefit of both the pipeline's shareholders, and gas consumers in the region."

The Tyra West – F3 pipeline is operated by Maersk Oil & Gas and owned by Shell Olie- og Gasudvinding Danmark BV (23%), AP Møller-Maersk A/S (19.5%), ChevronTexaco Denmark Inc. (7.5%) and DONG Naturgas A/S (50%).

The new pipeline gives each owner so-called divided rights to transport gas from Denmark for subsequent sale at Den Helder.

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