E.ON Renegotiates Gas Contract with Statoil

CEO of E.ON Johannes Teyssen has said that E.ON has come to an agreement with major supplier Statoil to readjust current gas purchase agreements in light of recent massive losses.

At an E.ON press conference today, Mr. Teyssen said that the contracts had been renegotiated to suit the current market climate.

"We have managed to agree with one of our biggest suppliers, Norway's Statoil, to develop further our long-term partnership for Norwegian gas in a way that adjusts the conditions to the current German and European market situation," he said.

The adjusted gas contracts may help to ameliorate recent financial losses for E.ON, which posted a large loss of €700 million for its gas sales and supply for last year.

Statoil is one of the main suppliers to E.ON, currently providing around 25 per cent of gas supply. Russia's Gazprom is also a major supplier to E.ON, supplying approximately 35 per cent of E.ON's gas supply needs annually. Mr. Teyssen said that negotiations with Gazprom were still ongoing.

In addition to the savings on Statoil gas, E.ON will also raise a further €5.5 billion from the sales of the Open Grid Europe gas pipeline unit, EON Waste-to-Energy and EON Westfalen Weser, a regional business in the northwest of Germany. The company expects those sales to be completed by 2013.