US producer Southwestern Energy said it would supply certified natural gas to a unit of German energy firm Uniper for domestic use and LNG exports.
As part of the multi-year agreement, SWN will supply Uniper with certified Responsibly Sourced Gas (RSG) for its US midstream gas portfolio that includes domestic distribution to downstream customers as well as natural gas to supply US facilities for liquefaction and export to global LNG markets.
RSG is a distinct natural gas classification that is verified for low-emission attributes and environmentally responsible production, according to a statement by SWN.
The agreement represents the first RSG transaction for Uniper in the US and its second in North America, the statement said.
SWN did not provide any additional details regarding the deal.
The company produces natural gas from its operations in the Appalachia and Haynesville Basins. Its natural gas already reaches global markets through its existing transportation and firm sales agreements, including approximately 1.5 Bcf per day currently sold to liquefiers.
Additionally, SWN is deploying continuous emissions monitors at each pad location to further improve and validate its emissions performance, the statement said.
“Transparency in energy production practices is a growing market interest, and agreements like this one are key to deploying responsibly sourced solutions for customers in the US and abroad,” said Marc Merrill, president and CEO for Uniper in North America.
“Southwestern Energy’s reputation as a first-mover in RSG makes it a valued supplier in assisting our customers achieve their critical supply objectives in a responsible manner,” Merrill said.
German LNG imports
Uniper, a unit of Finland’s Fortum, recently started started building the first German LNG import terminal in Wilhelmshaven.
Germany is moving quickly with its plans to build infrastructure and become a major LNG importer, as the European country looks to slash reliance on Russian pipeline gas.
Uniper also chartered two of the four FSRUs which will start serving Germany later this year and in 2023.
These include the two units RWE chartered from Hoegh LNG, and the Dynagas-owned 174,000-cbm Transgas Force and Transgas Power that will go on charter to Uniper.
Germany has been in talks to secure LNG supplies for the regasification plants, including with producers in the US and Qatar.
