Norsk Hydro Sells Snohvit Gas as LNG.Business Editors OSLO, Norway--(BUSINESS WIRE)--Oct. 18, 2001 The licensees of the Snohvit field offshore Norway in the Barents Sea Barents Sea, arm of the Arctic Ocean, N of Norway and European Russia, partially enclosed by Franz Josef Land on the north, Novaya Zemlya on the east, and Svalbard on the west. have signed separate contracts for the sale of liquefied natural gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. (LNG LNG (liquefied natural gas): see under natural gas. ) corresponding to the design capacity of the LNG plant that is to be built in the Northern Norwegian county of Finnmark. The sales agreements cover a period of 17 to 20 years from the planned production start in 2006. Norsk Hydro has sales agreements with the US-based El Paso Global LNG Company and Spanish Iberdrola S.A covering annual deliveries corresponding to 500 million cubic meters of natural gas (- 10 000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of oil equivalent). Statoil, RWE-DEA, Amerada Hess and Svenska Petroleum have signed separate contracts with the same buyers corresponding to the share each company has in Snohvit. Gaz de France Gaz de France (GDF) is a French company which produces, transports and sells natural gas around the world and especially in France which is its main market, but also Belgium, the United Kingdom, Germany and other European countries. and TotalFinaElf will lift their own gas from the field. In the USA, the gas from Snohvit will be priced according to the prevailing posted price. The price of the gas delivered to Europe will be comparable to alternative energy products. A pre-condition for the agreements is that the Snohvit development project will be approved by the relevant authorities on conditions consistent with the Snohvit group's development application. Norsk Hydros share of Snohvit is 10 percent. |
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