Enterprise Inks Gas Marketing Deal with Innogy
Enterprise Oil plc and Innogy Plc have announced an outline agreement for a natural gas market alliance in North-West Europe. In an initial three-year deal, the majority of Enterprise's current and future uncommitted gas production from its operations in the North West European region, will be purchased and marketed by Innogy. Gas production supplied is expected to reach over 2 million therms per day, around 50 per cent of the group’s gas production in the region by mid decade, with first deliveries by October 2002. Increasing synergies will develop between Enterprise's national supplies from these countries and between Enterprise and Innogy's supply positions, as the UK increasingly becomes a net importer of gas over the next decade.
This is an exclusive deal between two well-matched companies. Enterprise and Innogy will work together from their respective strong positions in the upstream and downstream gas markets to create further shared value.
Sam Laidlaw, Chief Executive of Enterprise said, "We see Enterprise's gas position in NW Europe growing substantially, not only through developments such as Skene in the UK, Corrib in Ireland and most notably Skarv in Norway, but also through our strong exploration position, especially in Norway"
"This alliance enables us to bring these volumes to market with full value, exploiting the growing links between the national markets and, together, capturing regional gas opportunities through the value chain. Innogy is an ideal partner for us. Its strengths complement our own. Innogy's focus on the downstream, energy trading and transmission, power generation and gas and power marketing, allows us to focus on exploiting our growing strengths in upstream gas in the region."
Brian Count, Chief Executive of Innogy said, "This deal plays to Innogy's strength in asset-backed trading. It will support our UK position in both retail and generation, and provide a platform for our trading and risk management services to other parts of Europe".