Bergermeer Gas Storage Consortium and Gazprom export press ahead with final investment

Thursday, Oct 22, 2009

The Bergermeer Gas Storage Consortium and Gazprom export today announced the Final Investment Decision (FID) on the Bergermeer Gas Storage investment programme.

The Bergermeer Gas Storage Consortium will invest EUR 800 million in the construction and design of the gas storage facility between 2009 and 2013. Gazprom export (a subsidiary of the world’s largest gas company JSC Gazprom) will provide a certain amount of cushion gas for injection into the Bergermeer reservoir and will receive working capacity and a participating interest in the technical operatorship of the facility.

As operator of the project, TAQA has completed a thorough environmental and safety assessment and expects to receive all necessary permits in 2010. Construction of the Bergermeer Gas Storage facility will start after the necessary permits have been granted allowing commercial operations to commence in 2013.

Paul van Gelder, Managing Director of TAQA in the Netherlands said: “I am delighted with this final investment decision by the BGS Consortium and Gazprom export. This is a substantial milestone and represents TAQA’s commitment to this flagship project. The transfer of high-end technological knowledge and skills from this programme will provide the Netherlands, and particularly the Alkmaar region, with substantial employment and career development opportunities.”

Jan Dirk Bokhoven, Chairman of the Executive Board of EBN said: “Our approval of the project is based on sound business principles and marks an important step for EBN towards extending its range of activities for the future. In addition, the project is expected to make a valuable contribution towards the ambition of our shareholder, the Dutch State, to realise the ‘gas roundabout of North-West Europe’ in The Netherlands.”

Alexander Medvedev, General Director of Gazprom export, and Deputy CEO of JSC Gazprom said: “The Bergermeer Gas Storage is a large-scale endeavour. Being linked to gas transit systems very close to major trading platforms it can cover demand in peak moments and conclude deals on the spot market. We at Gazprom export value the opportunity to propel this project in collaboration with solid and respectable partners. We firmly believe that Bergermeer UGS has all the makings of a true success story.”


For further information please contact:

TAQA Media Relations
Allan Virtanen
Tel: +31 20 79 75 100
[email protected]

Harald Boersma, Publicis Consultants | Van Sluis
Tel: +31 20 3055900
[email protected]

TAQA Investor Relations
Tanis Thacker
Tel: +971 2 661 4933
[email protected]

Claire Maloney, Capital MS&L
Tel: +44 207 307 5341
[email protected]
 

– ENDS –


Notes to Editors

About Natural Gas Storage
Storing natural gas underground is a long-established practice, with hundreds of facilities safely operating all over the world. The Bergermeer Gas Storage will utilise cutting-edge technology implementing the highest international best practice and safety standards.

The gas proposed for storage in the Bergermeer Gas Storage is processed dry, clean natural gas, which poses no significant documented health risk. The gas will be stored at a depth of 2.5 km, well below the water table and is enclosed by impermeable layers of rock. Since there is no oxygen present in this layer of sandstone, there is no risk of ignition.

TAQA has conducted a series of comprehensive safety studies to confirm the scientific and geologic integrity and viability of the storage reservoir and to ensure public safety. A study by Dutch research institute TNO has found gas storage in the Bergermeer reservoir is safe and also concluded that gas storage will decrease geological risks such as earth tremors.

Cushion gas provides pressure in the reservoir required for commercial storage operations.

The EUR 800 million investment will provide the Alkmaar region with an economic boost and direct and indirect employment for up to 800 people during the construction phase.The BGS incorporates stringent environmental and safety standards and will include  the drilling of 14 new wells to a depth of 3 km, laying 35 km of pipeline and the construction of a gas treatment facility in Alkmaar.
 
TAQA has set beyond Best-Available-Technology (BAT) as a standard for the project. An example of this is the design of the gas treatment and compression facilities as a Zero Emission plant, which means there will be no emissions to the atmosphere of hydrocarbons or CO2.

For more information, please visit: www.gasopslagbergermeer.nl

About The Abu Dhabi National Energy Company PJSC (TAQA)
Founded in 2005, TAQA (Abu Dhabi National Energy Company (PJSC)) is a global energy company with a growing asset base of AED 90 billion (US$ 24.5 billion). One of the largest companies listed on the Abu Dhabi Securities Exchange (ADX), with 2008 revenue of more than AED 16 billion (US$ 4.4 billion), TAQA is a flagship corporation for the Government of Abu Dhabi.

TAQA’s strategic goal is to build and operate a geographically diverse global portfolio of energy businesses across the value chain. It has operations in power generation, water desalination, upstream oil/gas, pipelines, and gas storage.

TAQA employs approximately 2,800 people from 41 different nations and operates from its offices in: Abu Dhabi; Ann Arbor, Michigan; Aberdeen; Amsterdam; Calgary and The Hague. This footprint is further extended through alliances with partners across Africa, the Middle East, Europe, North America and India.

At present there are up to 1,000 people working for TAQA in Europe, located at operational assets or TAQA’s four European offices in The Hague, Alkmaar, Amsterdam and Aberdeen.

TAQA carries an Aa2 credit rating from Moody’s.

About EBN
EBN (Energie Beheer Nederland B.V.) is an independent company with the Dutch State as its sole shareholder, represented by the Ministry of Economic Affairs. EBN plays a central role in the exploration, production, transportation and sale of Dutch natural gas and by doing so EBN realises for Dutch society the profitable development of energy resources.

The Netherlands, including the Dutch part of the continental shelf, is rich in gas reserves and, to a lesser extent, oil reserves. By participating in a large number of joint ventures with oil and gas companies, EBN contributes to the exploration and development of gas and oil reserves in an economically sound manner.

EBN is also involved in the sale of Dutch natural gas via an interest in the gas sales company GasTerra. EBN wishes to promote the development of the Dutch gas hub by, for example, contributing to the realisation of gas storage facilities. In addition, EBN investigates the options for (re-)using empty reservoirs and existing infrastructure for the storage of CO2.

EBN’s conduct is amongst others based on its code of conduct, in which respect for each individual, integrity and professionalism are leading principles. In consultations with business partners, EBN adopts a non-discriminatory, market-based and transparent position.

About Dyas
Dyas is a wholly owned subsidiary of one of the largest private conglomerates in Europe, SHV Holdings NV, active in 40 countries with some 45,000 employees; the company is headquartered in the Netherlands. Dyas participates as an active partner in oil and gas exploration, development and production joint ventures for more than 40 years. It currently participates jointly with 17 different operators in many production and exploration licences, both onshore and offshore, in the Netherlands, Great Britain and Colombia. Dyas also participates in Delta Hydrocarbons and Capricorn Oil.

The developed reserves for its asset base in the Netherlands, and the UK amount to some 43 million barrels oil equivalent with a daily production of 24,000 boe/day. In addition, Dyas recently concluded transactions with Oranje-Nassau and Ithaca Energy to further strengthen its asset base.

In 1963, Dyas was one of the first companies in the Netherlands to be actively involved in hydrocarbon exploration, through a collaborative venture with Amoco (now TAQA) and Gelsenbergen Kohl (now Petro-Canada). In 1964 this group discovered a gas field in the Bergen Concession which was followed by successful exploration in the immediate vicinity. The Bergermeer Gas Storage project represents another important milestone for Dyas in this area.

About Petro-Canada
In August 2009, Suncor Energy Inc. and Petro-Canada merged to form the ”new” Suncor Energy. The name of the legal holding company in the Netherlands has not yet changed, and its still known as Petro-Canada.

Suncor’s vision is to be Canada’s premier integrated energy company focused on operational excellence and high growth, with the assets, people and financial strength to compete globally. Suncor is headquartered in Calgary, Canada.

The merger created the largest energy company in Canada and the fifth largest energy company in North America. Suncor is an integrated company with businesses in oil sands, downstream, natural gas production, and conventional oil production in international and offshore locations. While working to responsibly develop petroleum resources, Suncor is also developing a growing renewable energy portfolio.
The company has a focus on low-cost, reliable operations; an excellent suite of growth projects; the financial strength to fund the future; and capable employees who are committed to responsible development.

The International and Offshore business generates strong and stable cash flow to help fund current and future growth projects, company-wide. Operations are offshore East Coast of Canada, where Suncor is a participant in every major oil development project, and the United Kingdom, Netherlands and Norway sectors of the North Sea. The company also holds material assets in Libya, Syria and Trinidad and Tobago.

About Gazprom export
Gazprom export, one of the most commercially successful and technologically advanced companies in contemporary Russia, ensures a steady flow of natural gas supplies to more than 20 nations.

Originally named Soyuzgazexport, founded in 1973, the company can be proud of its record: during this time span, it delivered more than three trillion cubic meters of Russian “blue fuel” to foreign customers in various parts of the globe.

In 2008 alone, the volume of its natural gas exports to European countries stood at 162.4 billion cubic meters. About 75 per cent of the total volume were shipped to Western European nations, with the remaining 25 per cent going to the Central European states.

Gazprom export, acting as the export arm of JSC Gazprom, supplies not only natural gas, but also gas condensate, oil, oil products, liquefied hydrocarbon gases and other oil, gas and petrochemical industry products.

Gazprom export facilitates entry into new markets, optimizes export flows, and analyses and forecasts gas market trends.

The company plays a pivotal role in the elaboration and implementation of Gazprom Group investment projects, both in Russia and abroad. Long-term contracts, signed by Gazprom export with global customers, serve as collateral for loans used by Gazprom Group to finance reconstruction, modernization and development of gas transmission networks in Russia.

 

Source: TAQA