Gazprom, DONG sign gas supply deal

By OGJ editors
HOUSTON, June 23 -- Russia's JSC Gazprom has signed an agreement with Danish utility DONG Energy to deliver natural gas to Denmark. The agreement represents the first-ever gas supply deal between the two countries.

Terms of the agreement specify that Gazprom will start gas supply to Denmark in 2011 via the North European Gas Pipeline. It commits DONG to buy 1 billion cu m/year of gas for 20 years, with an option to increase the quantity.

Under a separate agreement, DONG will next year begin supplying gas to Gazprom's UK unit Gazprom Marketing & Trading. This contract is for 15 years and calls for as much as 600 million cu m/year of gas to be delivered via the Langeled Pipeline, which will connect Ormen Lange gas field in Norway with the UK.