E.ON Global Commodities SE, the trading unit of E.ON SE, announced Thursday that it will buy up two million tons of regasified LNG per year from Meridian LNG Holdings Corporation for 20 years.
The purchased LNG will be delivered at UK’s National Balancing Point, E.ON said in a statement on its website, while Meridian LNG will deliver the LNG through its planned Port Meridian import and regasification terminal.
E.ON said it is involved in various regasification terminals across Europe.
The company said it may also purchase LNG in increasing volumes up to 750 million cubic feet (22.5 million cubic meters) a day if they are available.
"As gas markets in North America, Europe and Asia become increasingly interconnected, LNG is becoming a critical enabler for the optimization of E.ON’s asset base," said Christopher Delbrück, CEO of E.ON Global Commodities SE.
According to the statement, Meridian LNG previously signed to purchase 2 million tons of LNG per year for 20 years with Magnolia LNG from its facilities in Lousiana, the U.S., starting from early 2019.
Magnolia LNG is a wholly owned subsidiary of Liquefied Natural Gas Limited based in Australia.
E.ON said in the statement that it has booked 1.7 billion cubic meters per year of long-term capacity at the Grain LNG Terminal in the UK, 3 billion cubic meters per year of long-term capacity at the Gate Terminal in the Netherlands, while it has access to regasification capacities in Spain's Huelva and Barcelona.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr