The contract secures the continued operations at Skogn mill, which needed a new long term power supply contract by the beginning of 2011."We are very pleased with the agreement. Skogn is important to Norske Skog and for the forestry industry in Mid-Norway. This will help securing the workplaces at Skogn," says Sven Ombudstvedt, CEO of Norske Skog.The new contract with Statkraft secures yearly supply of 0.8 TWh of electricity per year until December 31, 2022. The agreement takes effect on January 1, 2011. In addition to Norske Skog, the agreement is negotiated in cooperation with Finnfjord AS, which will secure power supply for its smelter at Finnsnes in Northern Norway.Most of Skogn's existing power contracts expire at the end of 2010, but a volume of 0.3 TWh will be available in 2011 in addition to the power being delivered from Statkraft under the new contract. This secures almost full coverage of electricity to Skogn in 2011.