German LNG Terminal Signs Commercial Agreements: Market Continues to Show Strong Demand
Since January 2018, the market continues to show strong demand for an LNG terminal in Brunsbüttel. German LNG Terminal’s launch of “Open Season”, which was a dedicated process to determine market interest and identify potential customers, resulted in a positive outcome: a considerable number of Memorandums of Understanding has been signed with companies that represent a comprehensive range and complementary interests, ranging from regasification to send out and LNG distribution services. Next steps include further discussions with potential customers with a view to sign Head of Agreements.
After RWE and German LNG Terminal have already reached a long-term commercial capacity agreement in September 2018 on a substantial LNG capacity at the future LNG terminal in Brunsbüttel in northern Germany, a further long-term agreement with a global player in the LNG market followed in February 2019. Three months later, in May 2019, Axpo and German LNG Terminal sign a Heads of Agreement for a long-term capacity contract. Negotiations with other interested parties are ongoing. As a result of strong market demand, German LNG Terminal will apply for permits with a total terminal capacity of 8 bcma.
In June 2019, German LNG Terminal GmbH will start the EPC (Engineering, Procurement and Construction) prequalification process.