RWE Supply & Trading GmbH, one of Europe’s major energy companies, has committed to a significant portion of the capacity of Germany’s first liquefied natural gas terminal.
The German company signed the agreement with German LNG Terminal GmbH, the joint venture developing the terminal in Brunsbüttel in Northern Germany.
This contract follows a successful ‘Open Season’ in which market interest was tested. The total capacity of the combined LNG import and small-scale terminal will be 5 billion cubic metres.
RWE’s Chief Commercial Officer (gas supply and origination) Andrew Stracke said: “LNG will play an important role in the North-West European gas market and therefore we are very pleased to take this step forward towards an LNG terminal in Germany. We believe that together with German LNG Terminal, we can fully develop a significant business around the terminal delivering LNG and gas to our customers in Germany and throughout Europe.
“LNG remains a key growth area for RWE: this agreement will enable us to continue growing our portfolio and provide us with additional flexibility to take advantage of new opportunities as they present themselves in the global LNG market.”
German LNG Terminal is a joint venture between Gasunie LNG Holding, Oiltanking and Vopak LNG Holding.
Located close to Hamburg port, the terminal has one jetty to accommodate LNG carriers of up to Q-Flex capacity. Ships can access Scandinavia and the Baltic region from the terminal, which is designed to enable future expansion.
Negotiations between German LNG Terminal and other interested parties are ongoing. In addition, the engineering work for the permit approval process is progressing well. If all relevant permits have been obtained and there is sufficient interest in the market, the final investment decision is envisaged for late 2019. Construction work will then start in 2020 with the terminal being fully operational by the end of 2022.
RWE has an agreement to buy 1.1 million tonnes per annum from Qatargas for 7.5 years from July 2016, among its supply deals. The cargoes are shipped by Qatargas to terminals in northwestern Europe.