Germany’s RWE to sell Excelerate LNG in UK

Monday, 27 November 2006

 

RWE said it signed an agreement with Texas-based Excelerate to sell the regasified LNG Excelerate delivers to its GasPortTM facility being completed in Teesside, northeast England.

 

Excelerate’s UK operation will use an LNG vessel located in the English port of Teesport to regasify the LNG without the need for traditional onshore LNG storage tanks before delivering directly into the pipeline grid of the UK, Europe’s largest natural gas market.

 

All necessary approvals for the facility have been secured, and it is expected to be operational in about six weeks. The facility will have a maximum delivery capability of 11.3 million cubic metres per day, equivalent to approximately 3 percent of peak day UK natural gas demand, RWE said in a statement.


RWE also said it was in discussions with Excelerate to evaluate other possible projects in Germany, the UK and other European countries where Excelerate’s technology could be applied.

 

“We believe LNG will play an increasingly important role in European gas security of supply, and our co-operation with Excelerate gives us the ability efficiently to develop multiple entry points for LNG in Europe,” said Harry Roels, RWE Chief Executive.

 

RWE said its cooperation with Excelerate in the development of its downstream European LNG business complements RWE’s plans in the Netherlands, where it has reserved a 10 percent equity stake and a 3 billion cubic metres per annum regasification capacity position in the GATE project in Rotterdam.RWE also has a stake in the Adria LNG project in Croatia.

“We are delighted to have secured these agreements with RWE,” said Kathleen Eisbrenner, President of Excelerate.

“We anticipate that the cooperation between our two companies will form a solid platform to support many further LNG developments in Europe.

“We are especially pleased to have agreed our gas sales arrangements with RWE into the UK for sales of gas from our Teesside GasPortTM project. This project is the first of its kind and has been developed from inception to operation in only 15 months,” Eisbrenner said.