HOUSTON, Sept. 10, 2003 — Tractebel Electricity and Gas International, one of the business divisions of SUEZ , and Statoil, a worldwide integrated oil and gas company, announced an agreement under which Tractebel EGI’s subsidiary, Tractebel LNG North America (TLNGNA), will deliver 36 million MMBtu (approximately 34 billion cubic feet) per year of liquefied natural gas (LNG) to Statoil Natural Gas LLC at the newly reactivated Cove Point LNG import facility in Maryland, U.S.A.
This volume represents 40 percent of Statoil’s capacity rights at Cove Point, which upon its commercial reactivation in August 2003(1), joined Lake Charles, Louisiana, and Elba Island, Georgia, as the third “open access” LNG terminal in the continental United States.
The fourth active and longest operating LNG import facility in the continental U.S. is TLNGNA’s terminal in Everett, Massachusetts, which is proprietary. In addition to Everett, where the company is the sole supplier, TLNGNA is the primary LNG supplier to the EcoElectrica terminal in Puerto Rico. The company has made deliveries to each existing open access facility in the U.S., and has the ability to continue shipments to each facility in the future.
The term of TLNGNA’s agreement with Statoil at Cove Point is three years, and is set to begin on October 1, 2003. Trinidad is expected to be the primary source of supply.
TLNGNA will employ the vessels under its control for deliveries to Cove Point. Through the launch of the Berge Boston and Berge Everett earlier this year, the company has expanded its LNG shipping portfolio to four vessels that are either owned or under exclusive charter.
“Over the past 32 years, Tractebel subsidiaries have supplied about half of all of the United States’ imported LNG, and this agreement with Statoil provides an excellent platform for growth in the near term,” said Dirk Beeuwsaert, CEO of Tractebel Electricity and Gas International.
“Cove Point’s reactivation is further evidence of LNG’s increasingly important role in serving the growing demand for environmentally sound fuel in the United States. We’re very pleased to apply our considerable experience in the downstream LNG market to help meet this demand, both through deliveries to the existing U.S. import facilities and development of new projects such as our Calypso LNG Project in the Bahamas, which would serve the Florida market.”
Based in London, Tractebel LNG Ltd., a business unit of Tractebel Electricity & Gas International, operates worldwide to coordinate the expansion of Tractebel’s LNG supply business activities focusing on both Atlantic and Pacific markets, promoting new LNG ventures, trading LNG spot cargoes, and assisting in the procurement of international LNG supply for Tractebel EGI. It is not restricted to any particular supplier and has already delivered LNG cargoes into North America, Korea, Spain and Japan. It currently operates the Hoegh Galleon and Excalibur LNG carriers and is actively promoting LNG supply projects into Atlantic Basin markets in both the United States and Europe.
Tractebel North America
Based in Houston, Tractebel North America, Inc., a business unit of Tractebel Electricity & Gas International, owns and/or operates a total of 57 power, cogeneration, steam, and chilled-water facilities that representing a capacity of more than 5,807 MW of electricity generation, 12 million pounds per hour of steam, and 147,000 tons per hour of chilled water. Its wholly owned subsidiary, Tractebel LNG North America, manages a portfolio of LNG supply contracts with North American customers, directs several LNG vessels, and helps to promote new LNG projects in North America and the Caribbean. The company’s Distrigas of Massachusetts LNG receiving terminal in Everett, Massachusetts, which commenced operations in 1971, currently serves most of the gas utilities in New England and key power producers.
Tractebel Electricity & Gas International is one of the business divisions of SUEZ, a worldwide industrial and services group which provides innovative solutions in Energy — electricity and gas — and Environment — water and waste services.
Based in Brussels, Tractebel EGI offers global solutions in energy and services to customers in North America, the southern cone of Latin America, Southeast Asia and the Middle East. It develops, builds and operates energy facilities both in electricity and gas, including liquefied natural gas (LNG). It transports and distributes natural gas and LNG in several countries outside Europe.
Statoil is an integrated oil and gas company with business operations in 25 countries and 17,000 employees. The company has a total production of more then 1 million barrels of oil equivalents per day. Production of oil and natural gas on the Norwegian continental shelf is the backbone of Statoil’s business. But in addition, international oil and gas activities are growing rapidly.