OREANDA-NEWS. June 02, 2015. SSE has today agreed a significant expansion of its long-term gas supply contract with Norwegian oil and gas producer Statoil. 

Starting on 1 October 2015, the gas supplied from the six year deal, originally announced in October 2014, will increase from 0.5 million therms of gas per day to 2.5 million therms per day. The additional volume represents approximately 3% of Great Britain’s gas demand and around 25% of SSE's. 

In recent years production from the UK’s continental shelf has continued to decline while global competition for natural gas has increased. This agreement therefore secures important gas supplies for both the UK and SSE’s customers, from a reliable producer with physical links between its gas resources and the UK, until the end of 2021.

SSE procures gas to meet the needs of its customers and to fuel its electricity generation assets through a range of activities including: investing in gas production; securing long-term contracts with producers and active participation in energy markets.

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.”