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Supply contract concluded: EnBW acquires US liquefied natural gas

From: 21/06/2022 15:22

From 2026, the energy supplier EnBW will purchase 1.5 million tons of liquefied natural gas from the United States every year. With this long-term supply agreement, the group is significantly expanding its LNG business.

Under a long-term supply contract, the EnBW energy group has secured access to 1.5 million tons of liquefied natural gas (LNG) from the United States each year. The contract with Venture Global LNG of Arlington, Virginia, has a duration of 20 years and foresees the start of LNG deliveries in 2026.

“Important step towards diversification”

“This is the first long-term direct and binding US LNG levy agreement signed by a German company and an important step illustrating the German strategy to diversify the energy mix,” said Venture Global boss Mike Sabel according to l joint notice from both companies.

“At EnBW, we have gradually expanded our LNG business over the past few years,” explained Georg Stamatelopoulos, EnBW board member responsible for sustainable generation infrastructure. LNG plays a central role in the plan to expand the range of fuels for the production of energy and heat. “It opens up the possibility of new sources of supply to secure German gas supply in the transition period of the energy transition and builds the bridge to green energy supply.”

Scholz hopes to be able to purchase LNG through Lubmin soon

In view of the meantime reduced gas deliveries from Russia, LNG has recently become increasingly important for energy supply planning. In Germany, several projects for the supply of LNG have been launched, ranging from the temporary use of special vessels to the construction of several permanent terminals. Germany does not currently have its own LNG terminal.

Federal Chancellor Olaf Scholz was optimistic that in a few months it would be possible to land LNG in the Baltic Sea port of Lubmin. “I am very confident that we will achieve good results there,” said Scholz after a meeting with the state cabinet of Mecklenburg-Western Pomerania. “Our goal is to get as much as possible by the end of the year or shortly thereafter, so that we can get gasoline quickly wherever we are.” It is about becoming less dependent on Russian gas.

Fixed and mobile end shelves

The Federal Network Agency had previously argued in favor of a floating liquid gas terminal in Mecklenburg-Western Pomerania. “A floating terminal off the coast of Lubmin is under consideration and clarification talks are currently underway,” said agency head Klaus Müller.

In the future, EnBW wants to purchase at least three billion cubic meters of liquefied natural gas per year through the planned LNG terminal in Stade. To this end, the group signed a letter of intent with the operator Hanseatic Energy Hub (HEH) in March.

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