Russ Oil-Gas

06-20-2006 Regnum News - On June 16, Russian Gazprom and Danish DONG Energy concluded their first contract on Russian gas supplies to Denmark, the Gazprom press office reported on June 19. The contract was signed by the vice chairman of the Gazprom board Alexander Medvedev and the executive vice president of DONG Energy Kurt Bligaard Pedersen. According to the contract, the supplies will be started in 2011 and will be carried out via the Northern European gas pipeline. DONG Energy will buy gas for 20 years — 1bn c.m. a year with the possibility of annual volume increase. The sides have also agreed that DONG Energy will supply gas to Gazprom Marketing and Trading, UK-based company of Gazprom Group. The gas will be sold in the UK – 600mln c.m. a year for 15 years starting from 2007. The gas will be transferred by Langeled, a gas pipeline project that will connect Ormen Lange gas field in Norway with the UK. "By signing a long-term contract with DONG Energy we are entering an absolutely new region – the gas market of Denmark. On the other hand, the contract allows Gazprom Marketing and Trading to diversify its purchase portfolio and to get Northern Sea gas on a long-term basis," says Medvedev. "These contracts will allow DONG Energy to continue diversifying future gas supplies to its consumers. Our purchase portfolio includes gas from the Danish and Norwegian sectors as well as from Russian," says Pedersen. DONG Energy is one of the leading energy companies of Northern Europe. The company produces, distributes, sells and supplies fuel in Northern Europe. In the coming years DONG Energy is planning to start selling its shares on Copenhagen Stock Exchange. DONG Energy has a share in Ormen Lange gas field and Langeled gas pipeline. The pipeline is to be launched in 2007. Gazprom Marketing and Trading is a part of Gazprom Group. It was set up in the UK in 1999. The company supplies gas to over 40 big fuel buyers in Western Europe and continues enlarging its geographical presence, variety of goods and services and gas clientele.