Denmark has secured itself a portion of the natural gas Russia will soon pipe to western Europe through the new North European Gas Pipeline (NEGP), having put pen to paper on a supply deal with Gazprom.
Alexander Medvedev, deputy chairman of Gazprom, and Kurt Bligaard Pedersen, EVP of Dong Energy, have made history by inking the first contract for Russian gas supply to Denmark, the Russian gas giant revealed in a statement.
Under the contract, gas deliveries to Denmark will start in 2011 and will be transported via the NEGP currently under construction. Dong Energy has committed to annually buying 1 bcm of gas per year over the next 20 years, with contract provisions allowing for potential future increases in supply.
Furthermore, the parties have also signed a 15 year contract under which Dong will supply gas to Gazprom’s UK marketing division at a rate of 600 mcm per year, starting in 2007.