StatoilHydro, Sonatrach agreement at Cove Point

Sonatrach and StatoilHydro have, signed an agreement sealing a long-term partnership at the Cove Point receiving terminal for liquefied natural gas (LNG) in the USA.

Under the terms of the contract, Sonatrach will receive access to 2 billion cubic metres per year of regas capacity at the Cove Point terminal for 15 years from beginning of 2009.

As part of the arrangement, StatoilHydro will also purchase 1 billion cubic metres of LNG per year to Cove Point from 2009 to 2014.

The terms and conditions governing the arrangement have been agreed in the form of binding Heads of Agreements (HOAs).

The agreement has been signed by Dr. Chawki Mohamed Rahal, Vice President Commercialisation of Sonatrach and Mr Kåre Røsandhaug, Country President for Algeria, in the presence of Mr Mohamed Meziane, CEO of Sonatrach and his Excellency Mr Per Kristian Pedersen the Norwegian Ambassador to Algeria.