A record share of Norwegian gas sales in the 1999-2000 gas year will be used to improve recovery from Norwegian offshore fields.
Eighty percent of the 15 billion cubic meters sold by Norway's Gas Negotiating Committee (GFU) during this period, which expired on Sept. 30, was earmarked for injection.
Norsk Hydro's Grane development in the North Sea will be the primary recipient of these deliveries. A Statoil official who heads the GFU said the injection represents an interesting additional sales channel for Norwegian gas.
The official emphasized that these sales are made on commercial terms that match prices and conditions obtained in continental Europe. Most of the remaining 20 percent of sales in 1999-2000 were short-term deliveries to new and existing European customers.
Little was sold under long-term contracts. Statoil is optimistic over prospects for additional sales in the present gas year, which began Oct. 1. Statoil sees opportunities in the European electricity sector and in Eastern Europe.
In the longer term, the biggest demand for new Norwegian gas volumes will likely come from the UK as its own production declines.
© 2000 Mena Report (www.menareport.com)