DONG Energy and IBERDROLA have signed the detailed supply agreement, following the signing of the commercial terms as announced earlier this year, for IBERDROLA to deliver LNG, corresponding to approximately 1 billion m3/yr of LNG to DONG Energy. It is a 10 year delivery agreement, which includes an option for a five year extension; the deliveries will begin from late 2011.
The LNG will be delivered to Gate terminal in the port of Rotterdam. DONG Energy is co-owner of the terminal and has 3 billion m3 of the terminal import capacity at its disposal per year. The terminal is currently under construction and is expected to be in operation during the course of 2011.
This is the first LNG contract signed by DONG Energy and the first long-term contract for the supply of LNG into the Dutch market.
IBERDROLA will deliver the LNG of this agreement from its long-term portfolio, which is around 6 billion m3/yr. Through this agreement; IBERDROLA is not only making a significant contribution towards energy self-sufficiency in Northern Europe, but also diversifying final users for its gas, now focused on Spain, the United Kingdom and the US.
Read the article online at: https://www.lngindustry.com/lng-shipping/12082010/dong_energy_and_iberdrola_close_supply_agreement/