Global commodities firm Glencore completes acquisition of Danish utility’s unit with Dutch LNG regas
Glencore, the UK-listed commodities and mining company, has completed the takeover of the loss-making liquefied natural gas business of Danish energy company Orsted, including long-term capacity at the Dutch Gate LNG import terminal in Rotterdam.
Orsted had entered into an agreement in 2007 with the Dutch LNG terminal for the right to use 3 billion cubic metres of annual regasification capacity from 2011 to 2031.
The Danish company’s LNG business consists of the Dutch Gate capacity and five LNG purchase agreements.
The transaction was first revealed at the start of 2020 and was only now being completed.
Anglo-Swiss company Glencore is seeking to increase its LNG profile to match commodities market rivals Gunvor, Vitol and Trafigura.
The firm has growing LNG trading operations in Asia and Europe and competes globally for supply tenders.
Orsted’s other main businesses are in the wind and solar energy sectors.
The Orsted LNG business will be owned by Glencore’s oil trading division.
“We are increasingly focusing on the LNG business as a key part of our Oil division strategy and the Orsted transaction represents an important milestone in that journey,” said Glencore Oil’s head Alex Sanna.
“We see good opportunities in the market place and we are excited to continue to grow our LNG marketing portfolio,” Sanna added.
Glencore has a major position in the coal industry and it expects coal to play a continued role in the world’s energy mix, especially in Asia.
In Europe and the Americas, coal demand is declining with nations choosing to switch to natural gas.
Glencore is one of the most diversified natural resource companies and a major producer and marketer of more than 60 commodities and has stakes in around 150 mining and metallurgical sites and oil production assets.
Global commodities trader Glencore acquires Danish firm's LNG unit holding Dutch capacity
Glencore, the UK-listed commodities and mining company, has agreed to take over a loss-making liquefied natural gas business from Danish energy company Orsted, including long-term capacity at the Dutch Gate regasification terminal in Rotterdam.
