Ready to step up European gas sales
Posted: 16 March 2005
Hydro is ready to step up its European gas sales, says Olav Skalmeraas, who will represent Hydro at the E-world Energy & Water 2005 conference in Essen this week, where Hydro is present with a major stand.
Skalmeraas will be a speaker at the energy conference on Wednesday, where he will proclaim Hydro’s willingness to play a bigger role as a European gas supplier.
Germany currently makes up some forty percent of Hydro’s total gas sales in Europe , though current sales are tied to more long-term contracts.
Skalmeraas is not counting on an immediate drop in prices with a liberalization of the German market, but they will undoubtedly become more volatile and open up new business opportunities.
Favourable platform
Well established market positions in Benelux , France and the UK , as well as ownership positions and a flexible transport system to the most important landfalls for Norwegian gas on the Continent, give Hydro a strong position and a favourable market platform.
This position will be enhanced when the Ormen Lange gas comes on stream from 2007.
“We are now optimizing our portfolio to utilize spare capacity to sell to markets with the best prices,” says Skalmeraas.
According to Skalmeraas, Europe is strategically well positioned with respect to proven gas reserves. With the North Sea , North Africa and Russia as important sources, a European energy market presence will be more important for Hydro’s further upstream concentration in these areas.
“We are situated in the midst of a consumer market, and it’s the consumers we are counting on meeting in Essen , in the form of the industry and local distribution companies. One thing is certain: energy will be a vital issue for much of European industry.”
Posted by Editor Pipeline Magazine
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