Statoil Extends Gas Sales to Germany

The gas sales contract between Germany's Verbundnetz Gas (VNG) and Statoil has been extended by six years, corresponding to total additional deliveries of 12 billion cubic meters up to 2022.

Two billion cubic meters of gas have been supplied annually by Statoil to VNG since 1996, and an option to extend this contract has now been exercised.

"Germany is our largest single market, accounting for 30 per cent of our overall gas sales," says Rune Bjørnson, executive vice president for Statoil's Natural Gas business area.

"We place great emphasis on maintaining our position in this important market."

With 16 per cent of the total German market, VNG ranks as one of the country's major gas companies and operates primarily in the eastern regions.

The company's principal customers are regional distribution companies (stadtwerke), power stations and big industrial enterprises.

Gas delivered by Statoil to VNG in Emden in northern Germany is transported through the Netra pipeline system to areas in the east of the country.