E.ON Global Commodities (EGC SE) and Mitsui O.S.K. Lines, Ltd. (MOL) have concluded an agreement for the export of LNG from the US.
E.ON’s North American subsidiary, EGC NA, announced the conclusion of a 20-year precedent agreement as a foundation shipper with Gulf South Pipeline Company, for the shipment of natural gas from the proposed Coastal Bend Header Project.
Feed gas supply
EGC NA will be responsible for the 20-year supply of feed gas to be purchased free-on-board (FOB) by EGC SE as LNG.
At the same time, EGC SE has concluded a 20-year agreement for shipping capacity of up to two LNG vessels with Japanese shipping company MOL. The vessels will be engaged in a 20-year FOB off-take of approximately 800 000 tpy of LNG, sourced from US Gulf liquefaction projects, including the planned terminal near Freeport, Texas.
Leonhard Birnbaum, member of the Board of Management of E.ON SE, commented: “This transaction clearly demonstrates E.ON’s long-term commitment to building out our LNG business, which is one of the key elements of the broader EGC SE strategy. The feed gas supply and pipeline booking provide a strong platform to further expand our global gas portfolio.”
Christopher Delbrück, CEO of EGC SE, added: “These agreements are a very important step for our business. They build on our existing supply portfolio and provide further momentum, following 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 optimisation of E.ON’s group-wide asset base.”
Coastal Bend Header Project
Gulf South plans to construct an approximately 65-mile supply header to serve the liquefaction terminal near Freeport. The company also plans to expand and modify existing facilities in order to provide access to additional supply sources for the header with an anticipated start date in 2018, subject to regulatory approvals.
MOL will provide LNG vessels under the agreements, each with a capacity of 180 000 m3. Itochu Corp. will acquire a 50% stake in the project from MOL at a later stage. Delivery of the vessels is expected in 3Q18 to match the start-up of EGC SE’s FOB off-take from North America. The design of the vessels will enable EGC SE to serve its existing regasification capacities in Europe and optimise its growing LNG portfolio, including transiting through the Panama Canal once its expansion is complete.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/lng-shipping/12022015/eon-and-mol-in-lng-export-deal-240/