20 May 2011

Green light to Bergermeer UGS project

 Gazprom Export and TAQA welcome official publication of all required statutory approvals and permits to construct and operate the Bergermeer Gas Storage facility. The statutory approvals and permits were signed by Maxime Verhagen (Minister of Economic Affairs, Agriculture and Innovation), Melanie Schultz van Haegen (Minister of Infrastructure and the Environment) and other relevant authorities in the Netherlands.

Bergermeer Gas Storage operations will start in 2013 with full commercial operations in 2014. Bergermeer Gas Storage will almost double the Netherlands’ total storage capacity.

Bergermeer has a strategic location that allows ensuring the operation of the Nord Stream gas pipeline and continuity of gas supplies to the customers in Northwest Europe. In exchange for delivering cushion gas in order to pressurise the reservoir and make commercial operations possible Gazprom Group will receive a share in working capacity and participating interest in the technical operator of the facility. A successful implementation of the project will help Gazprom Group storage capacity in Europe reach 4.9 bcm of storage capacity by 2015.

“Bergermeer Gas Storage will ensure security of Gazprom supplies to Europe under long term contracts as well as safe technical operation of the Nord Stream pipeline,” said Vladimir Khandokhin, Head of Department of Logistics and Gas Procurement, Gazprom Export LLC.

“The cooperation with Gazprom in our development of Bergermeer Gas Storage is not only advantageous to our joint aspirations for security of supply in Northwest Europe, but provides the foundation for exploring further joint opportunities," said David Cook, Executive Officer and Head of Oil & Gas, Abu Dhabi National Energy Company PJSC (TAQA).


Gazprom Export

Gazprom Export is a 100 per cent subsidiary of Gazprom, which specializes in natural gas delivery to foreign countries. Its product portfolio also includes oil and oil products, gas condensate, sulfur, liquefied hydrocarbon gases, black carbon and oil & gas chemicals. Germany, Turkey, Italy, France and Poland are among its main customers. Gazprom Export also operates in new fields, is actively mastering markets in other continents, primarily in Asia.

Abu Dhabi National Energy Company (TAQA)

Abu Dhabi National Energy Company (TAQA) is a global energy company majority owned by the Abu Dhabi Government and listed on the Abu Dhabi Securities Exchange. Its main activities include oil and gas business, power generation and water desalination across four continents.

Bergermeer Gas Storage

The Bergermeer Gas Storage project will create Europe’s largest open access gas storage facility. Bergermeer will provide the Northwest European gas market with 46 TWh of seasonal storage, thereby almost doubling the Netherlands’ total storage capacity and adding an alternative source of flexibility on the TTF.

The depleted Bergermeer reservoir has the ideal geological characteristics for gas storage and is in a strategically excellent location: well connected to the gas transport network, close to major cities and industrial centres and only 20 km from the BBL pipeline transporting gas between the Netherlands and the UK.

TAQA (operator) and EBN hold 60% and 40% stakes in the Bergermeer Gas Storage project respectively. The design and construction of the facility require a total investment of EUR 800 million and involves drilling 14 high capacity storage wells, building a gas treatment plant and laying almost 40 km of pipeline.

11.3 TWh of long-term capacity (4 to 10 years) is intended to be awarded to the customers in November 2011 as a result of open season procedure. The remaining available capacity will be auctioned on an annual basis with the first auction taking place close to the start of commercial operations.

Bergermeer is an open access gas storage meaning that the majority of the storage capacity will be made available to the market via negotiated Third Party Access (TPA). The TPA capacity will be marketed via TAQA Gas Storage BV on both a longer-term basis and via annual auctions. 

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