Gazprom and DONG Energy signed a contract on the supply of additional volumes of Russian gas to Denmark through the Nord Stream pipeline.

The contract specifies that beginning from 2012 and during the period of 18 years Dong Energy will annually receive 1 bcm of gas more through the second line of the undersea pipeline.

Currently DONG Energy has the contract for supply of 1 bcm via Nord Stream.

«The new contract with DONG Energy to supply gas precisely through Nord Stream once again confirms the extraordinary importance and urgency of this project as a way of diversifying the gas supply infrastructure to Europe and making it more reliable», – said Alexander Medvedev, Deputy Chairman of Gazprom’s Management Committee.

«We are very pleased that with this additional contract we are strengthening our long term co-operation with Gazprom. The supplies of Russian gas are part of our gas sourcing strategy which builds on diversifying our sources of delivery in order to secure our energy supplies», – said Kurt Bligaard Pedersen, Executive Vice President in DONG Energy.

Background:

Denmark produces oil and gas in the North Sea and is a net exporter of hydrocarbon feedstock.

DONG Energy is the largest energy company in Denmark. It was established in 2006 after a merger of six companies dealing with oil and gas production, electric power generation, sales and distribution of heat and electricity to Danish consumers.

These activities – as well as energy trading – are still undertaken by DONG Energy – only nowadays broadened to several North European countries. The company has ownership interests in the Ormen Lange field and Langeled pipeline.

In 2006 Gazprom and DONG Energy signed the Agreement on Russian gas supplies to Denmark via the Nord Stream pipeline. Pursuant to the document Denmark, starting from 2001, was due to annually purchase 1 bcm of Russian gas during a period of 20 years. The Agreement also provided for a possible substantial increase in annual supplies.