"Gazprom" to deliver gas to Denmark via North European Gas Pipeline

19.06.2006 "Gazprom" to deliver gas to Denmark via North European Gas Pipeline On June 16, 2006, Alexander Medvedev, Deputy Chairman of the Management Committee of JSC Gazprom and Kurt Bligaard Pedersen, Executive Vice President of DONG Energy (Denmark) signed an agreement on deliveries of Russian gas to Denmark. Under the agreement, Gazprom will start supplying gas to Denmark in 2011 via the North European Gas Pipeline. This is the first ever gas supply agreement between Russia and Denmark. DONG Energy will purchase 1 billion cubic meters of gas a year for 20 years with an option of a substantial increase in the annual quantities. In addition, under a separate agreement, the Danish company will start next year supplying gas to a Gazprom subsidiary Gazprom Marketing and Trading in the UK market. The contract will remain in effect for 15 years and foresees annual deliveries of 600 million cubic meters. The gas will be delivered through the Langeled Pipeline, which will connect the Ormen Lange gas field (Norway) with the UK. "By signing long-term agreements with DONG Energy, we are entering an absolutely new region for us - the gas market of Denmark. At the same time, Gazprom Marketing and Trading will gain an opportunity to diversify its purchase portfolio by receiving gas from the North Sea sector on a long-term basis," commented mr. Alexander Medvedev. "We are pleased to announce this long term co-operation with the world's largest gas-supplier. With these contracts DONG Energy has further diversified future gas supplies to our customers. Our gas portfolio now consists of gas from the Danish sector, the Norwegian sector, as well as from Russia," mr. Kurt Bligaard Pedersen stressed.