DONG Acquires Swedish Gas Supply Company NOVA Supply

DONG has agreed the terms for the takeover of Nova Supply - the gas supply subsidiary of the Swedish gas company Nova Naturgas - with the other shareholders. The takeover that requires approval by the Swedish competition authorities will take effect from July 1, 2004.

DONG's takeover of Nova Supply is a consequence of the liberalization of the Swedish gas market. Wanting to strengthen Nova Naturgas as the entity responsible for the operation of the Swedish gas transmission system, the shareholders of Nova Naturgas, German Ruhrgas (30%), Norwegian Statoil (30%), Finnish Fortum (20%) and DONG (20%), decided to sell the supply subsidiary Nova Supply. Nova Supply sold 920 million m3 of gas on the Swedish market in 2003.

"The takeover of Nova Supply is an important step in DONG's strategic objective of deepening its position in the Swedish market, which is an important part of DONG's overall market. We have already signed a number of large supply contracts on the Swedish market, and we are pleased that this agreement further strengthens our position in Sweden", states Kurt Bligaard Pedersen, Executive Vice President of DONG, who recently agreed with Göteborg Energi on deliveries of approximately 370 million m3 of gas per year in the period 2006 - 2011.

In acquiring Nova Supply, DONG takes over the supply contracts of Nova supply as well as a number of gas distribution pipelines serving large Swedish consumers.