Norwegian oil & gas major Statoil and French energy player Engie have reached an agreement on the renegotiation of their long-term gas supply contracts.
According to Engie’s statement on Friday, December 2 the agreement, made on Wednesday, November 30, 2016, aims to modernize historical contracts in order to adapt them to the European natural gas markets evolution and to reflect the current market situation.
In 2016, Engie’s gas supply contracts with Statoil represented a total volume of 7.5 billion cubic meters per year, i.e. about 20% of the group’s portfolio of long-term gas contracts that can supply France.
The French player noted that, thirty years after the signature of the Troll contract, which enabled the development of the giant Troll gas field on the Norwegian continental shelf, this agreement illustrates the long-lasting partnership between the two companies.
“Engie and Statoil have demonstrated the possibility to find a commercial solution to modernize historical long-term contracts and to adapt them to today’s market environment. This renegotiation proves the quality of the relationship between our two companies,” says Édouard Neviaski , CEO of Engie’s Global Energy Management Business Unit, which manages the Group’s activities on energy markets.
“With this agreement, Engie has de-risked its long-term supply contracts by adjusting their pricing to market conditions,” he added.
As a reminder, earlier this year – in April – Engie and Gazprom Export had also reached an agreement to adapt the price of long-term gas supply contracts.