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Dutch gas storage project partners seek exit -sources

Published 09/28/2009, 11:36 AM
Updated 09/28/2009, 11:39 AM

* Dyas, Petro-Canada selling stakes -sources

* Move driven by disagreement over project's scope -source

* TAQA seen as natural buyer of their stakes

By Greg Roumeliotis and Catherine Hornby

AMSTERDAM, Sept 28 (Reuters) - Dutch oil and gas company Dyas and Canada's largest energy firm PetroCanada are looking to sell their stakes in one of Europe's largest gas storage projects, three people familiar with the matter said. The two companies want to exit the scheme, located in Bergemeer north of Amsterdam, because of disagreements with partner Abu Dhabi National Energy Company (TAQA) over how to take the project forward, one banking source said.

"TAQA would be the obvious buyer of their stakes, as they can develop the project from here," the source said. Pre-emption rights in such cases are often part of Dutch oil and gas agreements.

TAQA, which is to operate the facility, has a 36 percent stake in the project, while Dyas and Petro-Canada each have 12 percent. Dutch state energy project developer Energie Beheer Nederland has a 40 percent interest.

"As with many Dyas projects, we may sell but have not yet decided," a Dyas spokesman said.

Petro-Canada, now part of Suncor Energy, did not respond to a request for comment, while a TAQA spokesman said the firm did not wish to comment on other companies' business before they have made their official announcements.

With a planned working volume of 4.1 billion cubic metres, the gas storage facility is of major strategic and commercial value for both the Netherlands and its operators.

Still there is not a consensus within the consortium about the scope of the project, even as a final investment decision is expected soon, one source said.

THIRD PARTY ACCESS

In August, the four companies signed an agreement with Gazprom that would see the Russian energy giant deliver gas for injection into the Bergermeer reservoir in exchange for working capacity and a participating interest in the technical operator of the facility.

However, the consortium has said the majority of the facility's capacity will be made available for third party access, a key commercial aspect for the scheme's future.

The project is still at permitting stage and could be commercially operational as early as 2013 if construction starts in 2010, TAQA has said.

As its own gas resources decline, the Dutch government aims to strengthen the Netherlands' position as a gas hub in Europe by developing projects such as storage to help bolster its negotiating power with large energy exporters by accommodating seasonal fluctuations in supply and demand.

Dutch gas resources, including mainland Europe's biggest gas field near Groningen, have contributed about 200 billion euros to state income since about 1970, but annual income from gas is seen halving in coming years as resources dry up. (Editing by Will Waterman)

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