German utility Uniper and Norway’s Equinor initiate plans to increase Europe’s gas availability
LNG News Editor:
German utility Uniper has arranged increased capacity rights at Dutch Gate LNG import terminal in Rotterdam while Equinor confirmed that the Hammerfest LNG plant was resuming production in mid-May and would be part of the Norwegian company’s new planned natural gas production surge for Europe.
Equinor said that in addition to increased pipeline natural gas exports and the re-start of Hammerfest LNG, adjustments in the gas field permits would also increase the robustness of the production in the fields exporting via the Kollsnes processing plant.
Barents gas
Hammerfest LNG is scheduled to come back on stream following repairs from a fire in September 2020 and will provide more than 6 billion cubic metres of gas per year from the Barents Sea.
Equinor and its partners, together with the Norwegian authorities, will change production permits to allow higher gas production from the Troll, Oseberg and Heidrun fields to be maintained through the Northern Hemisphere summer months.
Uniper, which is based in Düsseldorf, said it would increase its capacity rights at the Gate terminal by 1 billion cubic metres per annum from October 1 and for a period of three years.
European natural gas buyers are seeking to diversify procurement options in the face of reducing pipeline natural gas volumes being transported from Russia because of the war in Ukraine.
The Rotterdam regasification terminal is a joint venture between Dutch utility Gasunie and Royal Vopak, the global energy storage giant.
The facility has been operational since September 2011 and its initial throughput capacity was 12 Bcm per annum and expansion plans will increase this to 16 Bcm every year.
Uniper said the latest deal at the Dutch Gate terminal builds on a long-lasting relationship between the companies.
In anticipation of a tighter natural gas market going forward, Uniper and Gate had already committed to a capacity increase of 1 Bcm per annum starting in October 2024.
“In these challenging times Uniper continues to broaden the access of its global LNG portfolio into Northwest Europe to fortify the security of supply for Germany and the Netherlands,” said Uniper Chief Commercial Officer Niek den Hollander.
Uniper’s European regasification capacity also includes capacity bookings at the UK LNG import terminal at the Isle of Grain in Kent.
The Isle of Grain facility is operated by the UK’s National Grid plc and is the largest in Europe in terms of storage.
Uniper said that in 2021 it traded more than 350 LNG cargoes worldwide and operated seven LNG carriers.
Gate Managing Director, Wim Groenendijk, said the latest transaction with Uniper was a prime example of close German-Dutch cooperation with concrete action in times of emergency.
“We will continue to explore on a daily basis how to best help our customers and society in serving the LNG and gas markets,” added Groenendijk.
“The LNG arriving at Gate terminal is of great importance for the gas supply of the Netherlands and the whole of Northwest Europe,” he declared.
Under Norway’s natural gas supply boost, production from the Troll field can be increased by up to 1 Bcm of gas in the event of loss of production on other fields in the area.
Part of Equinor’s plan also involved the postponed from May until September of planned turnarounds on four platforms on the Oseberg field.
