US LNG exporter Venture Global LNG has signed a deal to provide more liquefied natural gas to German energy firm EnBW, increasing the previously agreed volumes by 0.5 mtpa per year.
In June this year, the two firms signed two 20-year sales and purchase agreements under which Venture Global would supply about 1.5 million tonnes per annum from its Plaquemines and CP2 facilities, starting in 2026.
Now EnBW has increased the quantity of its long-term LNG offtake from Venture Global by an additional 0.5 mtpa from Plaquemines and CP2 LNG, according to a statement by the US LNG exporter on Thursday.
EnBW is the latest European customer of Venture Global, who already announced agreements with PGNiG, BP, Shell, Repsol, Edison, and Galp.
Also, this deal is the first direct binding offtake agreement for long-term US LNG signed by a German company.
“Venture Global is delighted to be a growing strategic partner to Germany and EnBW, a foundation customer at both Plaquemines and CP2,” Venture Global CEO Mike Sabel said in the statement.
“The German government has taken swift action to address the energy crisis and we are honored to support their efforts by providing security of US LNG supply,” he said.
“To become less dependent on Russian natural gas and to strengthen diversification and security of supply, EnBW is supporting the German government by increasing further access to LNG supplies. For this reason, we have stepped up our procurement volumes from Venture Global”, Georg Stamatelopoulos, COO generation and Trading at EnBW, said.
German LNG imports
In August, Germany signed a memorandum of understanding with RWE, Uniper, EnBW, and VNG for the supply of LNG to two FSRU-based LNG import terminals in Brunsbuettel and Wilhelmshaven.
Germany currently does not have LNG import terminals. The country is moving quickly with its plans to build infrastructure and become a major LNG importer, and has chartered five FSRUs.
These vessels include the two units RWE chartered from Hoegh LNG, the Dynagas-owned 174,000-cbm Transgas Force and Transgas Power that will go on charter to Uniper, and Excelerate’s FSRU chartered by Engie, TES, and E.ON.
Besides Brunsbuettel and Wilhelmshaven, these units will be placed in Stade and Lubmin as well.
Germany and the companies are now focusing on the Elbhafen LNG terminal in Brunsbuettel and the Wilhelmshaven LNG terminal as these two facilities with a capacity of up to 12.5 bcm per year should go online by the end of this year.
Besides these five FSRUs, Deutsche ReGas is also working on the first private German FSRU-based facility in Lubmin.