On June 16, Alexander Medvedev, Deputy Chairman of Gazprom’s Management Committee and Kurt Bligaard Pedersen, Executive Vice President of DONG Energy (Denmark) have inked the first Contract for Russian gas supply to Denmark.

Under the Contract, gas deliveries to Denmark will start in 2011 and will be effected by the North European Gas Pipeline.

DONG Energy is committed to annually buying within 20 years 1 bcm of gas, with Contract provisions stipulating potential increase in gas supply.

The parties also signed a Contract, under which DONG Energy would supply gas to Gazprom Marketing and Trading entering the Gazprom Group of companies. The gas will be marketed within 15 years in the Great Britain starting from 2007. 600 MMcm/y will be pumped by the Langeled gas pipeline designed to link the Norwegian Ormen Lange gas field with the Great Britain.

“By signing the long-term Contracts with DONG Energy, we are gaining access to a previously unconquered region – the Danish gas market. On the other hand, Gazprom Marketing and Trading receives the opportunity of diversifying its purchasing portfolio and acquiring, I’d like to emphasize it, also over a long-term the gas extracted in the North
Sea,” noted Alexander Medvedev.

“We are delighted to announce the commencement of long-term cooperation with the world’s largest gas supplier. The Contracts inked will enable DONG Energy to continue diversifying prospective gas deliveries to its customers. Apart from gas originating in the Danish and Norwegian sectors of the North Sea, our import portfolio now also includes gas from Russia,” underlined Kurt Bligaard Pedersen.

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DONG Energy is an energy leader in North Europe. The company is mainly engaged in energy production, distribution, marketing and supply to North European consumers. Over the next few years, DONG Energy plans to list its shares on the Copenhagen Stock Exchange. DONG Energy has ownership interests in the Ormen Lange field and Langeled pipeline, which is anticipated to be operational in 2007.

Part of the Gazprom Group, Gazprom Marketing and Trading was established in the Great Britain in 1999.

The company supplies energy to more than 40 wholesale buyers in West Europe and continues making efforts to expand its geographical presence, range of goods & services and number of companies making direct purchases of natural gas.