{"id":1832,"date":"2022-10-06T18:50:50","date_gmt":"2022-10-06T18:50:50","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=1832"},"modified":"2022-10-06T18:50:54","modified_gmt":"2022-10-06T18:50:54","slug":"us-to-boost-gas-exports-to-germany-under-deal-with-enbw","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/1832\/","title":{"rendered":"US to boost gas exports to Germany under deal with EnBW"},"content":{"rendered":"
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The newest US exporter of liquefied natural gas has signed a deal to increase exports to Germany,\u00a0one of a flurry of sales to Europe\u00a0amid a scramble to replace Russian energy supplies.\u00a0<\/p>\n\n\n\n

Venture Global said on Thursday it would expand a 20-year contract with German utility EnBW by 500,000 tonnes of LNG a year, to 2mn tonnes. US companies have executed about 47mn annual tonnes of sale and purchase agreements with various countries this year, according to Webber Research and Advisory. <\/p>\n\n\n\n

LNG is a central part of Germany\u2019s plans to cut\u00a0Russian gas supplies,\u00a0which accounted for 55 per cent of total imports before Moscow\u2019s invasion of Ukraine. It has recently chartered five specialised vessels that will allow imports by sea.\u00a0<\/p>\n\n\n\n

Until the invasion of Ukraine, Germany was planning to import more fuel from Russia via the\u00a0Nord Stream 2\u00a0pipeline under the Baltic Sea. Those plans have been suspended.\u00a0<\/p>\n\n\n\n

Venture Global\u2019s deal with EnBW is the only long-term LNG contract locked in between Germany and the US. Other German companies \u2014 including Uniper and RWE \u2014 have signed earlier-stage deals to import US LNG. Venture\u2019s shipments would begin in 2026 from the exporter\u2019s planned Plaquemines and CP2 plants in Louisiana.<\/p>\n\n\n\n

\u201cWe\u2019ve always believed that over time, [US LNG] was what global distribution would trend to in terms of customers around the world building up portfolios,\u201d said Mike Sabel, Venture chief executive. \u201cThat\u2019s changed obviously \u2014 dramatically \u2014 recently because of the invasion.\u201d<\/p>\n\n\n\n

Venture Global began operations at its Calcasieu Pass plant in Louisiana earlier this year, bringing the number of US liquefaction facilities \u2014 where gas is chilled and loaded on to tankers for export \u2014 to seven. Once fully built it will have peak capacity of about 12mn tonnes a year, bringing total US capacity to about 105mn tonnes. <\/p>\n\n\n\n

The recent surge in interest in LNG from the US marks a significant reversal of fortune for an industry that just two years ago was facing a crisis over environmental concerns and slack demand. <\/p>\n\n\n\n

But it has since benefited from a tight gas market and Moscow\u2019s weaponisation of gas exports in the wake of its invasion of Ukraine, which has forced Europe to look for alternative sources. <\/p>\n\n\n\n

\u201cThe fundamentals were moving in LNG\u2019s favour prior to the invasion,\u201d said Michael Webber at Webber Research and Advisory, a consultancy. \u201cBut it reinforces the strategic significance of US LNG \u2014 particularly into Europe.\u201d <\/p>\n\n\n\n

Despite the strong demand, the landscape remains competitive. Tellurian, a developer chaired by US LNG pioneer Charif Souki, has struggled to raise funds for its Driftwood export plant near Venture\u2019s facilities in Louisiana. The $25bn project\u2019s future is unclear after two big buyers\u00a0pulled out\u00a0last month.\u00a0<\/p>\n\n\n\n

Sabel said Venture Global had been involved in \u201cextremely active negotiations and discussions\u201d over potential deals for the past six to nine months.<\/p>\n

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