By the OGJ Online Staff
HOUSTON, Aug. 29 -- State-owned Polish Oil & Gas Co. (POGC) and Norway's Gas Negotiating Committee (GFU) have agreed on terms for delivery of 74 billion cu m of Norwegian gas over 16 years.
The deal, which is due to be signed soon, requires approval by government authorities.
Due to start in 2008, deliveries would build over 3 years to 5 billion cu m/year and remain at that level until 2024.
If the volumes are insufficient to justify the proposed pipeline, the Norwegian gas producers can withdraw from the agreement.
GFU negotiated the deal on behalf of Statoil AS, Norsk Hydro AS, Norske Shell AS, ExxonMobil Corp., and TotalFinaElf SA. It will be decided later which fields will supply the gas.
Thor Otto Lohne, Statoil vice-president for natural gas marketing, said, "This is a breakthrough for Norwegian gas deliveries to Poland. It is a good agreement, similar to others in Statoil's portfolio."
The contract replaces one for 500 million cu m/year from 2000 to 2006 that POGC and GFU negotiated last year.
Poland used 11.1 billion cu m of gas in 2000, with Russia supplying 6.9 billion cu m of that.
Statoil said one pipeline option would be a 1,100-km line through the Skagerrak channel between Norway and Denmark, extending to Niechorze on the Baltic coast, where it would link with the Polish gas network.
That line also could supply Sweden and Norway's Grenland industrial region south of Oslo. Longer term, it also could supply Denmark.