E.ON Bets On US LNG Exports, Signs 20-year Contracts
On Thursday, E.ON Global Commodities North America concluded a precedent agreement with Gulf South Pipeline Company to ship gas on the planned Coastal Bend Header Project for 20 year. The gas will then be bought free-on-board by Düsseldorf-based E.ON Global Commodities, which just concluded a compatible 20-year agreement for shipping capacity of up to two LNG vessels with Japan’s MOL.
‘The vessels will be engaged in a 20-year free-on-board (FOB) off-take of approximately 800,000 tons per year of LNG sourced from U.S. Gulf liquefaction projects, including the planned terminal near Freeport, Texas’ reads the note released on Thursday.
According to Freeport LNG’s website, the construction period of the initial train of the liquefaction project should be approximately 45 months. The terminal on Quintana Island (Texas) has started construction to create a import/export terminal with an export capacity of approximately 13.2 million tons per annum, building on its facility on the same island that serves as an LNG regasification terminal.
While Europe and the US are discussing an eventual energy chapter in the TTIP, the German company is increasing its LNG portfolio.
“These agreements … (follows) two contracts concluded for Qatari LNG and our involvement with the Goldboro project in Canada. As gas markets in North America, Europe and Asia become increasingly interconnected, LNG will be a critical enabler for the optimization of E.ON’s group-wide asset base” Christopher Delbrück, CEO of EGC SE, commented.