July 29, 2010 / 10:19 AM / 9 years ago

Statoil cuts value of U.S. LNG asset due shale glut

OSLO, July 29 (Reuters) - Norwegian oil and gas producer Statoil STL.OL wrote down the value of its U.S. LNG import facility in Cove Point, Maryland, because shale gas discoveries in the United States limited the need for liquefied natural gas.

“There are large new volumes of U.S. gas, which significantly reduce the need for LNG,” Statoil’s Chief Executive Helge Lund told a news conference after the company reported second-quarter results on Thursday. [ID:nLDE66R239]

“Imports to Cove Point are significantly smaller and therefore we have taken a writedown of 3.8 billion crowns ($619.3 million) ... But we still believe that demand for gas in the United States will rise,” added Lund.

Last December, Statoil and Russia’s Gazprom (GAZP.MM) — Europe’s two biggest gas suppliers — signed a deal to cooperate in LNG in the United States, including at the Cove Point import terminal and regasification facility. [ID:nGEE5B022M] (Reporting by Ole Petter Skonnord; Editing by Alison Birrane)

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