StatoilHydro signs access agreement with Algeria's Sonatrach for LNG at Cove Point
StatoilHydro said it has signed an agreement with Sonatrach and for a long-term partnership at the Cove Point receiving terminal for liquefied natural gas (LNG) in the USA.
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Under the terms of the contract, Algerian state-owned energy group Sonatrach will receive access to 2 bln cubic metres per year of regas capacity at the Cove Point terminal for 15 years from the beginning of 2009.
As part of the arrangement, StatoilHydro will also purchase 1 bln cubic metres of LNG per year to Cove Point from 2009 to 2014. StatoilHydro has delivered LNG to Cove Point from suppliers in Trinidad, Algeria and Egypt since 2003. “The agreement is an important step in ensuring supply for the Cove Point Expansion project while expanding StatoilHydro’s presence in the US,” said Rune Bjornson, executive vice president for natural gas in StatoilHydro. No further financial details were provided. |