Statoil eyes New York markets

STAVANGER, Norway, March 3 (UPI) -- A deal to transport shale gas from the Northern Marcellus shale gas play in Pennsylvania gives Norway's Statoil access to key U.S. markets, the company said.

Statoil Natural Gas, the U.S. subsidiary of Norwegian energy giant Statoil, brokered a deal with Tennessee Gas Pipeline and Texas Eastern Transmission to move 70 billion cubic feet of shale gas to the New Jersey and New York City areas.

Marcellus Shale gas deposits are locked in the Appalachian Basin

Rune Bjornson, the executive vice president of Statoil Natural Gas, described the deal as a breakthrough for his company.

"These agreements secure access to some of the main pipeline systems for gas in the New York City area and thereby help maximize the value of our gas produced in the Marcellus shale," he said.

Statoil views the New York City and Manhattan area as a "particularly interesting market" because of its high demand for gas and booming population.

The Tennessee Gas Pipeline project can carry as much as 218 billion cubic feet of gas per year. Statoil said it expects its contracts for U.S. shale to go into effect in November 2013.