UK ENERGY Minister, Stephen Timms yesterday (2 October) signed an agreement that has the potential to fulfil up to a fifth of the UK’s annual gas demand. The deal will take a substantial step towards addressing and overcoming the UK’s predicated reliance on imported gas in the latter half of the decade.
Mr Timms met with his Norwegian counterpart, Einar Steensnaes in Oslo to co-sign an agreement on principles that will be incorporated in a new Framework Treaty for future cross-border oil and gas co-operation between the two countries. The agreement provides a firm basis for new investments by industry, most notably on the proposed Britpipe project from the Norwegian Ormen Lange field, that will bring an estimated 20 bcm/yr from winter 2006/7, or around 20% of the UK’s current annual demand. The regulatory terms for a prospective link between the Norwegian and the UK’s dry-gas infrastucture was also agreed.
As we reported on 17 April, a 1200-km long pipeline, 42-in diameter, is a proposed possibility, making UK landfall at Easington or Dimlington.