Southwestern Energy Co. the second-largest US natural gas producer, has signed a deal with Uniper to supply the German utility with Responsibly Sourced Gas (RSG) to satisfy the Green and left-wing government in Germany while costing German consumers more for future LNG imports.
Southwestern holds 768,000 net acres in the Appalachian Basin of tghe northeast US and 257,000 net acres in the Haynesville Shale.
The Springs, Texas-based company finished certifying all its Appalachian production earlier in 2022 and expects its Haynesville assets in Louisiana to be certified by the end of 2022.
“Southwestern Energy is strategically positioned to supply the world’s growing energy demands with its responsibly sourced gas,” said Chief Executive Bill Way.
“We believe natural gas is foundational to a low carbon future, and that US natural gas in particular plays a vital role in supporting global energy supply and security,” added the CEO.
As part of the agreement, for which no financial details were released, Southwestern will supply Uniper with RSG for its US midstream gas portfolio that includes domestic distribution to downstream customers.
Analysts said that deals such as this appeared to guarantee that German consumers would pay the most in the European Union for LNG for gas-fired power.
The US company is able to transport the natural gas to US Gulf Coast facilities for liquefaction and export to global LNG markets, though at a premium.
RSG is a natural gas classification created for the Green era that is verified for low-emissions and can give a ready virtual signal as being “environmentally responsible” as the German Greens demand.
Anti-capitalist Greens
The Green coalition partners in the German government have always been opposed to LNG imports and its army of demonstrators have for several years blocked LNG projects in Germany until the Russian gas crisis left no alternative to imports.
Southwestern noted that the agreement represented the first RSG transaction for Uniper in the United States and its second in North America.
“Southwestern is strategically positioned to supply the world’s growing energy demands with its responsibly sourced gas,” said the US company.
“We believe natural gas is foundational to a low carbon future, and that US natural gas in particular plays a vital role in supporting global energy supply and security,” it added.
“This agreement further demonstrates SWN’s differentiated position to reliably deliver responsibly sourced gas both here at home and abroad,” explained CEO Way,
“We’re excited to announce this agreement with Uniper and pleased to provide a critically-needed and low carbon energy solution,” he stated.
Marc Merrill, President and CEO for Uniper in North America, said that transparency in energy production practices is a growing market interest, and agreements like this one are key to deploying responsibly sourced solutions for customers in the US and abroad.
“Southwestern Energy’s reputation as a first-mover in RSG makes it a valued supplier in assisting our customers achieve their critical supply objectives in a responsible manner,” added Merrill.
