Endesa and GasLog, the international owner, operator and manager of liquefied natural gas (LNG) carriers, signed an eight-year charter agreement for the maritime transport of the company's LNG acquisitions after May 2021, Endesa announced Thursday.
According to the statement of the Madrid-based energy company, the agreement has two optional six-year extension periods.
"This will become Endesa's second LNG carrier, which will guarantee the transport and management of the 2 billion cubic meters per year of LNG, acquired in 2014 from U.S. gas company Cheniere Energy, to be shipped from the Port of Corpus Christi in Texas, U.S.," it said.
The LNG carrier is expected to be supplied to Endesa in September for the start of its commercial operations later this year, once the liquefaction plant has received the permits required to start up its first LNG train.
The Gaslog Warsaw will have an LNG storage capacity of 180,000 cubic meters in its four cryogenic tanks, which can be used to store gas in a liquid state at a temperature of -160ºC, according to the press release.
The carrier will sail under a Greek flag and will be built at the Samsung Heavy Industries shipyard in Korea. It will be capable of transporting LNG volumes equivalent to Spain's total daily demand, or the annual supply of 170,000 Spanish households.
"The ship also features an on-board, partial re-liquefaction system that can reduce its gas consumption, allowing it to choose the type of fuel it will use, either 100 percent natural gas or low-sulfur fuel oil, making it much more eco-friendly than most ship engines that use oil-derived fuels, greatly reducing its emissions," the statement read. It is also equipped with on-board nitrogen oxide emission reduction systems.
According to the press release, until the signing of this agreement, Endesa acquired LNG for direct delivery at ports.
"With the new strategy, the company will manage the maritime transport of LNG by signing long-term contracts for newly-built LNG carriers, allowing it to manage gas from the source to its destination," it said.
According to Jose Bogas, CEO of Endesa, "this change in strategy, which involves acquiring LNG from the source and signing charter agreements to guarantee the availability of LNG carriers for maritime transport, will allow Endesa to cater to its gas supply requirements over the next 20 years with much more flexible and competitive options".
By Hale Turkes