German Shipping For US LNG Offtake

Maritime Activity Reports, Inc.

February 13, 2015

Image: E.ON

Image: E.ON

 German energy company E.ON signed a 20-year deal with Gulf South Pipeline Co for shipment of natural gas for a planned export facility in Texas. 

According to the deal, EGC, the trading arm of E.ON will be the shipper of liquefied natural gas (LNG) at the planned Coastal Bend Header project near Freeport, Texas.
E.ON board manager Leonhard Birnbaum said in a statement that this transaction clearly demonstrates E.ON's long-term commitment to building out its liquefied natural gas business.
Gulf South Pipeline Co. plans to build a 65-mile transit artery to serve the planned export terminal. The company said it anticipates a 2018 start date.
E.ON has also struck a deal with Japanese shipping group Mitsui OSK Lines LTD (MOL) to transport liquefied natural gas from the United States.
Running over 20 years, the shipping agreement includes capacity of up to two LNG vessels transporting about 800,000 tonnes of LNG from U.S. Gulf projects per year, including the planned terminal near Freeport, Texas, E.ON said.
Freeport LNG Development is to build the Texas plant capable of processing 1.8 billion cubic feet of natural gas per day for exports to countries with and without free-trade agreements with the United States. 
Market observers say that the agreements help E.ON diversify its global gas portfolio, but there is also a security dimension to the deal.
Maritime Reporter Magazine Cover Mar 2019 - Cruise Shipping

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News