Algerian state-run energy firm Sonatrach and StatoilHydro have signed an agreement sealing a long-term partnership at the Cove Point receiving terminal for liquefied natural gas in the US.
Under the terms of the contract, Sonatrach will receive access to two billion cubic meters 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 one billion cubic meters of liquefied natural gas (LNG) per year to Cove Point from 2009 to 2014. The terms and conditions governing the arrangement have been agreed in the form of binding heads of agreements.
Rune Bjornson, executive vice president for natural gas in StatoilHydro, said: The agreement is an important step in ensuring supply for the Cove Point Expansion project while expanding StatoilHydro’s presence in the US. It is an important broadening of the successful commercial relationship between Sonatrach and StatoilHydro, and strengthens StatoilHydro’s role in the international LNG market, supplementing equity supply from Snohvit.