Jun 21, 2022
German Utility Signs Long-Term Deal to Buy LNG From the US
(Bloomberg) -- German utility EnBW Energie Baden-Wuerttemberg AG signed a long-term deal to purchase liquefied natural gas from a US exporter, becoming the latest European firm to procure American fuel in a bid to curb imports from Russia.
Venture Global LNG will supply EnBW with 1.5 million tons a year of LNG starting in 2026, according to a joint statement from the companies. The 20-year sales and purchase agreement is Germany’s first binding deal with a US developer since the government announced ambitious plans to begin importing the super-chilled fuel.
Germany is urgently seeking to cut dependence on Russian gas amid the war in Ukraine and uncertainties over future supply. The country, which doesn’t currently have any LNG import infrastructure, is set to become a major buyer within a year as it fast-tracks new terminals.
RWE AG, another German utility, inked a non-binding pact to buy LNG from a proposed US project in May.
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