DONG Energy Doubles Future Gas Supplies from Gazprom
Gazprom Export (a Gazprom Group company) and DONG Energy today signed a contract for delivery of gas to DONG Energy via the Nord Stream pipeline in the Baltic Sea. The gas volumes will be delivered at the Danish/German border.
In June 2006, Gazprom and DONG Energy signed a contract stipulating Gazprom's delivery of one billion cubic meters of gas per year, starting from 2011, for a period of 20 years. The contract included an option to substantially increase annual quantities. This option has now been partly put into use, resulting in the new additional contract under which Gazprom, starting from 2012, will deliver an additional one billion cubic meters of gas per year for a period of 18 years through the Nord Stream pipeline. The contract is linked to the finalization of the second part of the Nord Stream pipeline.
"We are very pleased that we with this additional contract are strengthening our long term co-operation with Gazprom. The supplies from Gazprom are part of our gas sourcing strategy which builds on diversifying our sources of delivery in order to secure our energy supplies," said Mr. Kurt Bligaard Pedersen, Executive Vice President in DONG Energy.
The agreement supplements current gas supplies from DONG Energy's E&P production and long term contracts on deliveries from Northwest Europe, which will be further complemented in 2011 with gas from the Gate LNG-terminal in Rotterdam. With such a diversified portfolio, DONG Energy is in a strong position to secure the supply to the Danish and Swedish markets in the future.
The content of this announcement does not alter the previously announced expectations for DONG Energy's financial result for 2009 or the announced expected level of investments.
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