Axpo and German LNG Terminal have signed a heads of agreement for a long-term capacity contract for the LNG terminal in Brunsbuettel in northern Germany.
Axpo's LNG services include physical LNG supply, diversion rights, profit sharing, financial hedging structures, cancellation options and access to the most important international trade markets. Axpo's growing LNG portfolio includes long-term natural gas supplies, a 5% stake in the Trans Adriatic Pipeline and distribution channels in most European countries.
Domenico De Luca, head business area trading & sales and member of the executive committee of Axpo Group, says: 'Axpo has been active in global LNG markets for nine years now and offers tailor-made physical LNG supply and hedging solutions. Our LNG business is one of our most important strategic growth areas: With the shutdown of numerous coal-fired power plants expected in the medium term, LNG is expected to gain further importance as an energy source and will be able to increase its market share in Europe.
'Our goal is to further optimise the delivery of LNG to our customers together with German LNG Terminal.'
Rolf Brouwer, managing director of German LNG Terminal, adds: 'We continue to powerfully move forward with the realisation of our terminal project. Obviously, an increasing number of market players are convinced of the future relevance of LNG for the German energy market and rely on our concept of a multi-service terminal with an independent terminal operator. Jointly with our terminal customers, we will contribute to an efficient and long-term energy supply to German customers.'
In spring 2019, the terminal will apply for the required permit for the terminal, with the investment decision scheduled for the end of 2019. Once the permits are received, construction work will start in 2020, with the terminal being operational by the end of 2022.
A new deepwater midstream frontierRegulatory update for US tank terminal operators Capturing hidden storage opportunities Make room for the boom From short to long - the US oil revolution Optimising the US Gulf Coast energy potential Storage stability amid a mixed production picture in the Americas Storage for Europe's energy transition Storage for a growing product market Should the industry rethink storage tank fire protection