Norsk Hydro and WINGAS Set up Joint Venture
December 11 2003 - 3:22AM
PR Newswire (US)
Norsk Hydro and WINGAS Set up Joint Venture OSLO, Norway, Dec. 11
/PRNewswire-FirstCall/ -- Norsk Hydro, the Norwegian energy,
aluminium and chemicals group, and the German gas transportation
and supply company, WINGAS GmbH, have decided to set up a joint
venture for the marketing and sales of natural gas in the UK. The
50/50 joint venture company is called HydroWingas Limited. Subject
to approval from the EU Competition Authority, it will start
marketing and sales activities in the spring of 2004 and aim to
rapidly expand its operations from then on. The company is planned
to be based in Twickenham outside London. The scope of business is
to sell natural gas directly to major industrial end customers as
well as to redistributors. HydroWingas is an independent company
and will purchase the required gas from the market, third parties
or from the owners. Since domestic production of natural gas is
decreasing, the UK will become increasingly dependent on imports
over the coming years. "By entering the market as a competitive and
service-oriented supplier, we will be making a considerable
contribution to the long-term, reliable supply of the country with
natural gas, the energy of the future," explained Dr. Rainer Seele,
spokesman for the WINGAS board of management. At the same time the
joint venture will benefit early on from the UK market's resultant
potential for growth. "Both Hydro and Wingas wish to establish a UK
presence. Joining forces also means cost effectiveness and
complementarity in competence and experience," says Hilde Myrberg,
Senior Vice President in Norsk Hydro. "As energy companies with
considerable experience in Continental gas sales we wish, through
HydroWingas, to establish a position in the UK and participate in
the future energy supplies to this market, in particular on the
background of the Ormen Lange field and pipeline development,
Myrberg says. Norsk Hydro (UK) Limited, the holding company for
Hydro's interests in HydroWingas Limited as well as the majority of
Norsk Hydro's subsidiaries in the UK is a 100% subsidiary of Norsk
Hydro ASA. Norsk Hydro ASA is a public limited company incorporated
in Norway and listed on the stock exchanges of New York, Oslo,
Stockholm, London, Paris, Frankfurt, Dusseldorf, Hamburg, and
Zurich. Norsk Hydro is active on a worldwide basis in the following
three core business activities: (i) exploration, production, and
distribution of oil, gas, and energy; (ii) production and sale of
aluminium, and (iii) production and distribution of fertilizers and
related chemicals. WINGAS GmbH is based in Kassel, Germany, and is
a joint venture of Wintershall (65 %) and the Russian company OAO
Gazprom (35 %). The company has been active in the gas supply
industry since 1990 and supplies natural gas to public utilities,
major industrial enterprises and regional gas distribution
companies via its network of pipelines that is now more than 2,000
kilometres in length. Certain statements in this press release are
or may constitute "forward- looking" statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Statements
that are not in the nature of historical facts may be deemed to be
forward-looking statements and may contain identifying words such
as "believes", "anticipates", "plans", "expects" and similar
expressions. These forward looking statements are based on Hydro's
current expectations, assumptions, estimates and projections about
the company and the industries in which it engages in business. All
forward-looking statements involve risks and uncertainties. For a
detailed description of factors that could cause Hydro's actual
results to differ materially from those expressed in or implied by
such statements, please refer to its annual report on Form 20-F for
the year-ended December 31, 2002 and subsequent filings on Form 6-K
with the U.S. Securities and Exchange Commission. With respect to
each non- GAAP financial measure Hydro uses in connection with its
financial reporting and other public communications, Hydro provides
a presentation of what Hydro believes to be the most directly
comparable GAAP financial measure and a reconciliation between the
non-GAAP and GAAP measures. This information can be found in
Hydro's earnings press releases, quarterly reports and other
written communications, all of which have been posted to Hydro's
website (http://www.hydro.com/). Web Sites: http://www.hydro.com
http://www.hydrooilandenergy.com DATASOURCE: Norsk Hydro CONTACT:
Tor Steinum, +47-22-53-27-31, or Cellular, +47-95-08-39-33, or ; or
Hege Marie Norheim, +47-22-53-81-25, or Cellular, +47-95-70-64-27,
or , both of Norsk Hydro
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