E.ON Global Commodities (EGC), the energy trading arm of E.ON, has agreed to buy up to two million tonnes of regasified liquefied natural gas (LNG) a year from Meridian LNG.
The gas will be purchased at market-reflective conditions for 20 years. EGC will also have the option to purchase additional volumes of about 750 million standard cubic feet a day if they are available.
Meridian LNG will supply the gas via its proposed Port Meridian import and regasification terminal in the UK, which is anticipated to commence deliveries in 2019.
Port Meridian will feature a floating storage and regasification unit, a subsea pipeline, and onshore facilities linking into the UK National Transmission System.
EGC CEO Christopher Delbrück said: “This contract is an important step forward for our gas business. It builds on our already diverse supply portfolio and provides further momentum for the business.
“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.”
Meridian LNG had earlier signed a 20-year, 2 mtpa liquefaction term sheet with Magnolia LNG, the owners of the planned Magnolia LNG facility in Lake Charles, Louisiana, US.
A binding liquefaction tolling capacity agreement is expected to be signed shortly.