GDF Suez and Gasnor Sign LNG Deal

France's GDF Suez and Norway's Gasnor have signed a contract of supply, to last over 12 years, through which GDF Suez will supply Gasnor with 7.5 terrawatts (TWh) of LNG.

The supply is due to begin from 2013 and will see GDF Suez transfer the resource from the Zeebrugge LNG terminal in Belgium. The companies say the deal will see Gasnor able to meet its ever-growing demand in Norway and the rest of Europe, with GDF heralding the agreement as a "milestone" for the liquefied natural gas market.

"This agreement with Gasnor is a milestone for the development of our activities in the small scale LNG market in Europe," GDF's Executive Vice President in charge of the Global Gas & LNG business line Jean-Marie Dauger said. "With more than 250,000 trucks loaded in our Everett LNG terminal in New England since 1971, GDF Suez is already a player in this activity in the US and wishes to develop it also in Europe."

Gasnor, a currently small-scale supplier with operates two LNG carriers and supplies to 30 LNG ships, says the move will increase its standing in the market.

"We are very pleased to sign this agreement with GDF Suez," CEO of Gasnor Eilef Strange said. "The contract will allow Gasnor to meet increasing demand for LNG and open up the market for redistributing of LNG from one of the largest import terminals in Europe."

No financial details of the deal were released today.