SSE expands gas supply deal with Statoil

SSE has expanded a long-term gas supply contract with Norwegian energy giant Statoil. From 1st October, Statoil will increase supplies to SSE from 0.5 million therms of gas per day […]

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By Priyanka Shrestha

SSE has expanded a long-term gas supply contract with Norwegian energy giant Statoil.

From 1st October, Statoil will increase supplies to SSE from 0.5 million therms of gas per day to 2.5 million therms a day.

The additional volume represents around 3% of UK’s gas demand, the Big Six supplier said.

The six-year agreement was originally announced in October last year.

SSE said production from the UK’s Continental Shelf has continued to decline in recent years while global competition for natural gas has increased.

Jim Smith, SSE’s Managing Director of Energy Portfolio Management said: “Maintaining a diverse and balanced portfolio of contracts and assets, both long and short term, enables SSE to meet the energy needs of its customers.

“The significant expansion of our agreement with Statoil is consistent with this strategy, securing a significant volume of gas from a reliable producer with physical links to the UK. This is good news for both the UK and SSE’s customers.”

Last month Centrica also extended its gas supply contracts with Statoil and Russia’s Gazprom.