Shell Danmark starts direct gas export to Netherlands

Shell Olie-og Gasudvinding Danmark BV has begun the first direct export of natural gas from Denmark to the Netherlands through a new 100-km subsea pipeline.

Jul 26th, 2004

Shell Olie-og Gasudvinding Danmark BV has begun the first direct export of natural gas from Denmark to the Netherlands through a new 100-km subsea pipeline.

The pipeline creates new markets for Danish gas in North West Europe, contributes to a more competitive energy market, and improves security of supply.

The 26-in. pipeline, which represents an investment of over $200 million, runs from the Mærsk-operated Tyra West platform on the Danish continental shelf to the NAM-operated F3-FB platform on the Dutch continental shelf. From there, gas is fed into the NOGAT pipeline system to Den Helder on the Dutch coast.

"This project, which involved staff from EP Europe and the downstream gas business Shell Energy Europe, is an example of how cooperating across borders can create opportunities and value," said Tom Botts, chief executive of Shell Exploration and Production in Europe. Building a connecting subsea pipeline allows us to use existing infrastructure in a new way to the benefit of both the pipeline's shareholders, and gas consumers in the region."

The Tyra West – F3 pipeline is operated by Mærsk Oil & Gas and owned by Shell Olie-og Gasudvinding Danmark BV (23%), AP Møller-Mærsk A/S (19.5%), ChevronTexaco Denmark Inc. (7.5%), and DONG Naturgas A/S (50%).

The new line gives each owner so-called divided rights to transport gas from Denmark for subsequent sale at Den Helder.

Shell Exploration and Production in Europe brings together Shell's exploration and production operations in eight European countries – Denmark, Netherlands, Norway, UK, Italy, Ireland, Germany, and Austria.

07-26-04


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