§ Mr. Gardnerasked the Minister of Power whether agreement has yet been reached on the purchase of gas from the Leman Bank and Indefatigable fields: and if he will make a statement.
§ Mr. MasonThe Gas Council has now signed 25-year contracts with Shell and with Esso for the purchase of their share of the gas from these fields. The price for Leman Bank will be 2. 87d. per therm for the group's share of the first 600 million cubic feet per day supplied from the field in any year, with provision for reductions as the quantity increases; the reductions will be bigger after the first 15 years. For Indefatigable the price for the first 15 years will be 2. 9d., with reductions for quantity thereafter. The details are as follows:
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Field Quantity of Gas* Price (pence per therm) First 15 years Remainder Leman Bank First 600 m.c.f.d.† 2. 87 2. 87 Next 600 m.c.f.d. 2. 85 2. 80 Remainder 2. 83 2. 75 Indefatigable First 600 m.c.f.d. 2. 9 2. 9 Next 600 m.c.f.d. 2. 9 2. 83 Remainder 2. 9 2. 78 *Average daily equivalent of the annual quantities supplied from the whole field during the year. The price applies to the combined Shell/Esso share of these quantities. * Million cubic feet per day. These prices apply to the annual contract quantities—at 60 per cent. load factor; valley gas—that is, extra gas supplied mainly in the summer—will be priced at 2. 025d. per therm. The prices are subject to limited adjustment by reference to certain indices.
The contracts only apply to Shell and Esso's share of the fields but the Gas Council and its partners in the Amoco group expect to sign similar contracts on Thursday, 19th December. Negotiations with other groups concerned will follow. Supplies from the two fields combined are expected to build up to a level of over 2,000 million cubic feet per day by the mid-1970s.