Norway turns on gas early:
The outlook for Britain's winter gas supplies are about to brighten when the first gas supplies direct from Norway begin to flow next week, a month ahead of forecasts, The Business has learnt. The gas delivery, on 4 September through the E2.5bn ($3.2bn, £1.7bn) Langeled pipeline from Norway to Yorkshire marks the historic start of a new source of gas that will supply up to a fifth of UK demand for the next 40 years. Langeled alone has capacity to deliver 74m cubic meters a day. The first “commissioning gas” is scheduled to arrive at Easington next week. After a few days' testing, Norwegian gas pipeline operator Gassco will declare the pipeline open. This means commercial gas could flow well ahead of the official start date in October. The news supports the case made last week by UK energy regulator Sir John Mogg that the UK market will be well supplied with gas this winter. Although the giant Ormen Lange field doesn't start to supply the Langeled pipeline until October next year, it is expected to be between half and two thirds filled with gas from other Norwegian fields re-directed from continental European markets. Mogg said the BBL pipeline from Belgium to Norfolk was also on schedule to be finished in December, and the expansion of the existing gas pipeline between the UK and Europe was also running to plan. The price of UK gas for delivery this winter has declined since April, when it peaked at 88.7p per therm. Gas for delivery in the first three months of next year was down to 73p per therm on Friday. Ormen Lange is being developed by Norway's Norsk Hydro, which owns 18% of the field, which will be operated by Royal Dutch Shell, which has 17%. Hydro announced last week that the Langeled pipeline was E400m below budget. The other partners are Norwegian state holding company Petoro, Norwegian state oil company Statoil, Denmark's DONG and US oil giant Exxon Mobil. UK gas company Centrica managed construction of the Langeled terminal at Easington. 29.8.06