Gazprom Marketing and Trading USA, a U.K.-registered wholly owned subsidiary of Gazprom, and Statoil ASA announced they had signed several agreements to increase gas and LNG sales in the U.S. market.

A memorandum of understanding signed by the two sides covers the finalization of a series of separate, mutually beneficial agreements between the companies. These include a deal for regasification capacity at the Cove Point, Md., receiving terminal for LNG, gas sales and LNG imports to the United States.

Statoil and GM&T USA are now negotiating terms and conditions of the final binding detailed agreements based on the MoU they aim to finalize by first quarter 2010, the companies said.

The memorandum provides that, from next year, GM&T USA will receive access to 50 million cubic feet per day of regasification capacity at the Cove Point terminal. The deal is covered by yet another agreement that covers the LNG throughput.

A separate throughput agreement will see the Gazprom subsidiary receiving long-term access to 200 million cubic feet per day of regas capacity at the Cove Point terminal for 18 to 20 years.

GM&T USA will utilize the capacity to import LNG purchased from Gazprom Group's worldwide portfolio of supplies. Analysts noted Gazprom is the world's largest gas company by asset base, accounting for 17 percent of the world's total natural gas reserves and more than 70 percent of natural gas reserves in Russia.

GM&T has headquarters in London and was established in 1999 to manage Gazprom's marketing and trading activities in the liberalized markets of Europe. GM&T is responsible for the optimization of Gazprom's energy commodity assets and downstream expansion through its marketing and trading network and has its own subsidiaries in Houston, Paris, Berlin and Manchester. Additionally GM&T trades energy commodities including gas, power, oil, carbon and LNG. The GM&T USA subsidiary was formed in 2006.

Significantly, both agreements also include the release to GM&T USA of take-away Cove Point Expansion pipeline capacity. The Russian subsidiary will purchase natural gas from Statoil at various trading hubs in the U.S. market. The agreement, which commenced on Nov. 1, 2009, includes a gas volume of 100 million cubic feet per day and will last more than five years.

Under a separate 20-year agreement, Statoil will buy 200 million cubic feet per day of LNG from Gazprom Group's global portfolio of LNG supplies for delivery in international waters to Statoil for regasification at the Cove Point terminal.

"The regasification agreements with Statoil will enable GM&T USA to import significant volumes of LNG purchased from Russia and other sources, both short and long term, and will provide a firm foundation for our long term LNG supply strategy," said John Hattenberger, President of Gazprom Marketing & Trading USA.

He said the gas purchase agreement would enable the company to strengthen its North American marketing and trading operation, which it launched on Oct. 1, and provide it with gas supplies "in areas of strategic importance."

Irene Rummelhoff, Statoil senior vice president for international gas development in natural gas, said the deal underlined the Gazprom subsidiary's "ability to develop our gas business in the U.S. where we over a relatively short time have built a position in upstream conventional production, shale gas and the LNG-import terminal Cove Point."

Norwegian Statoil is an international energy company with operations in 40 countries. It is the second-largest supplier of gas to Europe.

Analysts said the agreements presaged a strengthening foothold for Gazprom in the United States.

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