The crude pipeline system owned by Danish Oil Pipe A/S includes the off-shore tie-in platform Gorm “E”, 330 km pipeline across the peninsula of Jutland to crude storage and export facilities adjacent to the Shell Refinery in Fredericia. In addition, facilities for separation, storage and export of LPG are being installed adjacent to the existing facilities in Fredericia.

Danish Oil Pipe A/S will be disposed to Energinet.dk.

The Pipeline Act

The transportation of crude is regulated by the Pipeline Act(“Rørledningsloven”) which defines the commercial framework for the operation of the pipeline system and commits Danish Oil Pipe A/S to accept deliveries from any crude producer, however subject to technical feasibility.
 

Capacity

A potential producer considering investments in production facilities should therefore as early as possible approach Danish Oil Pipe A/S in order to ensure necessary capacity or, if such capacity is not available, ensure that technical feasibility for transportation can be established.
 

Transportation Agreement

In advance of delivering crude to Danish Oil Pipe A/S’ pipeline system, a producer will have to enter into a transportation Agreement with Danish Oil Pipe A/S. A model Transportation Agreement addresses relevant commercial and operational matters such as producers’ and Danish Oil Pipe A/S’ delivery and redelivery commitments, respectively, as well as procedures for metering, allocation of hydrocarbons and value adjustment.

 

Downloadable material

Transportation Agreement
Exhibit A: The Transportation System 
Exhibit B: Measurements Tests and Sampling
Exhibit C: Will be specified for relevant producers
Exhibit D: Offtake and lifting procedures (XLS)
Exhibit E: Magnitude of Reservation and Reservation Date
Exhibit F: Value Adjustment Procedure
Exhibit F - Appendix 1: Exemplification
Exhibit F - Appendix 2: Procedure for Establishing Data for the Value Adjustment
Exhibit G: Allocation Procedure
Exhibit G - Appendix 1: Schematic Overview of the Allocation System
Exhibit G - Appendix 2: Flow Chart
Exhibit G - Appendix 3a: The Complete Set of Mathematical Equations (User - Non-user)
Exhibit G - Appendix 3b: The Complete Set of Mathematical Equations (user - user)
Exhibit G - Appendix 4: Procedure for Manual Override
Exhibit H: Tariff, Billing and Payments
Exhibit H - Appendix 1 (XLS)
Exhibit I: Sideletter 
Exhibit J: Sale and Purchase Agreement on Fuel Gas
Exhibit K: Agreement between Fredericia Harbour A/S and Transporter
Exhibit M: Parent Company Guarantee (form)
Exhibit N: Shell Product Supply Specification M16428 (Butane) 
Exhibit O: Shell Product Supply Specification M16228 (Propane) 
Approval of the model Transportation Agreement for DONG Oil Pipe A/S (only in danish)
Approval of Exhibit B & D for the model of Transportation Agreements (only in danish)
Approval of application for the fiscal measurement (only in danish)
Fulfilment of conditions 5 and 9 of approval of application for the fiscal measurement (only in danish)

 

For further information, please contact Director Lars Bach