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Ørsted to Divest LNG Business

Gate Terminal
Gate Terminal

By The Maritime Executive 12-19-2019 06:27:24

Ørsted has signed an agreement to divest its LNG business to natural resources company Glencore.

In December 2007, Ørsted entered into a long-term agreement with the Dutch LNG regasification terminal Gate in Rotterdam regarding the right to use three billion cubic meters of annual regasification capacity from 2011 to 2031. Currently, Ørsted’s LNG business consists of the long-term regasification capacity agreement with the Gate terminal in Rotterdam and five LNG purchase agreements.

The company said in a statement: “Even though Ørsted’s LNG team has performed well during the last few years, the business has been loss-making and is projected to remain so for years to come. Further financial improvements would require further contractual commitments. With Ørsted’s global expansion in renewable energy, it is clear that LNG trading will not be a part of Ørsted’s future core business, and it is therefore being divested.”

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities. The Group's operations comprise around 150 mining and metallurgical sites and oil production assets.

The transaction entails a payment from Ørsted to Glencore and is expected to take place in the summer of 2020.