Sempra Infrastructure contracts RWE for 2.25 million tonnes of liquefied natural gas per year

A 15-year contract

German energy company RWE has signed a contract with US firm Sempra Infrastructure to supply 2.25 million tonnes of liquefied natural gas (LNG) per year from the US. This was reported by DPA on Wednesday, citing the German company.

According to its information, the contract is designed for 15 years, but supplies are not due to start until 2027. The agreed volume, according to the company, corresponds to about 3 billion cubic metres of natural gas per year. The LNG is expected to be supplied from a new terminal in Port Arthur, Texas, which is expected to be operational in 2027.

Germany said RWE could supply anywhere in the world, such as LNG import facilities in Germany.

Also, Sempra Infrastructure Chief Executive Officer Justin Bird said: "We could not be more excited about the completion of our contract with RWE as we continue to support the energy security as well as the environmental objectives of our European customers."

It is known that to date, Germany has been reducing its dependence on Russian energy resources. The plan is to move away from coal and oil within a year. In this situation the German government is focused on building terminals to receive liquefied natural gas. Germany's first floating terminal for liquefied natural gas was opened in Wilhelmshaven in mid-December.

In addition, Germany's LNG GmbH is planning to build an onshore LNG regasification terminal in Brunsbuttel for the import and distribution of LNG. The terminal will have an annual regasification capacity of 8 billion cubic metres and will enable gas to be imported directly to the German market from regions that cannot be reached by pipeline.

Germany will be receiving a further floating LNG regasification facility by the end of the year and two more by May 2023. Their total annual capacity is estimated to be 33 billion cubic meters of gas. Meanwhile, approximately 60 bcm has been delivered through Nord Stream in 2021. The first stationary LNG terminal in Germany is not scheduled to be completed until 2026.