Uniper's Sharjah LNG Project Delayed
German energy supplier Uniper has acknowledged a delay in its joint LNG import venture in the Arabian peninsula.
Sharjah National Oil Corporation (SNOC) and Uniper in October 2016 executed a memo of understanding with the objective of forming a joint venture to import LNG into the Emirate of Sharjah, one of the seven United Arab Emirates. SNOC will hold 60% and Uniper 40% in that joint venture. A spokesman for Uniper has told NGW this week there is no change to that.
Also in May 2017, SNOC and the Sharjah Electricity and Water Authority (Sewa) signed a full gas sales agreement under which SNOC will supply imported LNG to Sewa for power generation.
"The project sponsors intend to enter into binding agreements for the chartering of an FSRU (floating storage and regasification unit) in 3Q2018 and to start commercial operations of the LNG import project in early 2020. This is a bit later than originally intended, but the project is on a good path," the Uniper spokesman told NGW June 14. There may more to say in 3Q2018, he added.
In effect, the project's timeline has slipped two years in the past two years. When Uniper and SNOC announced their detailed plans in October 2016, LNG imports were expected by the spring of 2018.
Update 5.50pm GMT, June 15: E.ON said late June 15 it will shortly complete the sale of its stake of 46.65% stake in Uniper to Finland's Fortum, having closed all conditions. "The transaction will thus be executed and completed within the next two weeks," it said. E.ON will then receive proceeds of some €3.8bn. Once completed, Uniper will be 47.12%-owned by Finnish utility Fortum. "We are convinced that Uniper will have a successful future with Fortum as a strong partner,” said E.ON CEO Johannes Teyssen.