Spanish energy major Iberdrola and Norway-based company Gasnor have signed a liquefied natural gas (LNG) supply contract worth around $100m, pursuant to which Iberdrola will supply LNG from its re-gasification plant at Huelva in Spain.

The LNG looks likely to be shipped in a new 7,500 cubic meter (cbm) capacity cargo vessel, which Gasnor will put into operation in the first half of 2009.

The contract is expected to allow Gasnor to meet increasing demand in Scandinavia, which is exceeding production capacity at its three liquefaction plants on the west coast of Norway.

The LNG supplies from Iberdrola reportedly represent an effective back-up for production, and will help Gasnor meet supply contracts with its customers.