Member Article

UK signs key energy partnership with Norway

The UK has signed an energy partnership with Norway, in a move which will secure affordable and sustainable long term energy supplies for both nations.

The Norway-UK Energy Partnership for Sustainable Growth will support close collaboration between the two countries across a wide range of energy activities. This will include safe and environmentally sensitive oil and gas extraction, long term gas supply, renewable energy investment, electricity interconnection and international climate change policy development.

Both countries have also pledged to invest billions in the scheme, which has the potential to create thousands of new jobs.

Commenting on the scheme, the prime minister David Cameron said: “The jobs and investments announced today highlight how vital the strong relationship between Norway and the United Kingdom is for our energy security and economic growth.

“We look forward to strengthening our partnership further, driving investment into a diverse, sustainable energy mix that delivers affordable long term supplies for consumers.”

As part of the deal, Norwegian oil services firm Aker Solutions will create 1,300 new jobs by 2015 at its engineering hub in Chiswick, adding to 1,000 jobs created by the firm in the past two years.

Statoil and Centrica will also continue to cooperate on gas supply and exploration, building on a £13 billion ten year gas supply deal agreed between the two companies last November and follows the completion of a £1 billion asset deal between the firms to increase Centrica’s pil and gas reserves.

The Forewind Consortium, which includes Norwegian companies Statoil and Statkraft, has confirmed its intention to develop the 9GW Dogger Bank offshore wind project off the East coast of Yorkshire, which could require up to £30 billion of investment.

This project could provide more than 10% of the UK’s electricity needs. In addition to this project Statoil and Statkraft are investing around £1 billion in developing the Sheringham Shoal offshore wind farm off the coast of Norfolk, which is already generating power and will be completed later this year.

Charles Hendry, UK Minister of State for Energy, added: “For many decades Norway has been one of our most trusted and valuable partners, working with us to develop North Sea resources that underpin our energy security.

This was posted in Bdaily's Members' News section by Ruth Mitchell .