E.ON Signs 20-Year LNG Shipping Deal with MOL, Newbuild Order Placed

LNG carrier. File photo.

EGC SE, the energy trading arm of gas and power company E.ON signed a 20-year agreement with Japanese shipping company Mitsui O.S.K Line (MOL) for their role in shipping approximately 800,000 tons of liquefied natural gas per year from U.S. Gulf liquefaction project, including the planned terminal near Freeport, Texas.

Concurrently with this deal, MOL signed a newbuilding contract with Daewoo Shipbuilding and Marine Engineering for two 197,900 cubic meter LNG carriers.

E.ON says the LNG aboard these vessels will deliver feed gas to its existing LNG regasification facilities in Europe and around the world.

Christopher Delbrück, CEO of EGC SE, commented:

“These agreements are a very important step for our business. They build on our existing supply portfolio and provide further momentum, following two contracts concluded for Qatari LNG and our involvement with the Goldboro project in Canada. As gas markets in North America, Europe and Asia become increasingly interconnected, LNG will be a critical enabler for the optimization of E.ON’s group-wide asset base.”

E.ON says that following the opening of the expanded Panama Canal, “it is intended that Itochu Corporation will acquire a 50 percent stake in the project from MOL at a later stage. Delivery of the vessels is expected in Q3 2018 to match the start-up of EGC SE’s FOB off-take from North America.”

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