Essen, 23 November 2006This pressinformation is more than two years old

RWE co-operates with Excelerate Energy in LNG

  • Gas purchase agreement signed for LNG delivered to the UK via Teesside GasPortTM
  • Joint development of new downstream European entry points for LNG under consideration in Germany, the United Kingdom and other European countries
  • Co-operation with innovative LNG player

RWE is co-operating with Excelerate Energy (Excelerate) in the development of its downstream European LNG business. This complements RWE’s existing plans in the Netherlands where it has reserved a 10% equity stake and a 3 billion m3 per annum LNG regasification capacity position in the GATE project. RWE also has a stake in the Adria LNG project in Croatia.

RWE Trading GmbH has signed an agreement with Excelerate to market all of the gas Excelerate delivers to its Teesside GasPortTM facility in the United Kingdom. Excelerate’s specially designed LNG vessels regasify the LNG before delivering directly into the pipeline grid, without the need for traditional onshore LNG storage tanks. All necessary approvals for the facility have been secured, and it is expected to be operational in January 2007 with a maximum delivery capability of 11.3 million m3 per day, equivalent to approximately 3% of peak day UK demand.

RWE and Excelerate are at present jointly evaluating other possible project sites in Germany, the United Kingdom and other European countries where Excelerate’s technology could be applied. A Memorandum of Understanding has been signed concerning this co-operation.

“We believe LNG will play an increasingly important role in European gas security of supply, and our co-operation with Excelerate gives us the ability to efficiently develop multiple entry points for LNG in Europe. Co-operation with Excelerate will benefit RWE’s gas portfolio by giving us access to flexible gas supplies from the global LNG market”, said Harry Roels, CEO of RWE AG. “In the longer term, we expect this relationship could support our efforts to bring RWE’s gas reserves to our European customers.”

“We are delighted to have secured these agreements with RWE,” said Kathleen Eisbrenner, President of Excelerate. “We anticipate that the cooperation between our two companies will form a solid platform to support many further LNG developments in Europe. We are especially pleased to have agreed our gas sales arrangements with RWE into the UK for sales of gas from our Teesside GasPortTM project. This project is the first of its kind and has been developed from inception to operation in only 15 months.“

Notes to the Editor:
RWE gas business

RWE is a leading player in the European gas market, with gas procurement amount to approximately 40 billion m3 per annum. RWE procures its supplies primarily from Russia, Netherlands, Norway, Germany and the United Kingdom. During 2005 RWE’s upstream arm RWE Dea extracted 2.4 billion m3 of natural gas, primarily in Germany and the British North Sea. RWE Dea also has substantial gas reserves and resources in North Africa. RWE also has a stake in the Snoehvit LNG export project in the Norwegian Barents Sea.

Excelerate Energy
Excelerate is a U.S. private company that was formed in 2003 to pursue new LNG importation alternatives worldwide using its proprietary Energy BridgeTM technology. Excelerate now operates 3 Energy BridgeTM ships and one conventional vessel, a further two Energy BridgeTM ships are due for delivery to Excelerate in 2008/9. Excelerate owns the Gulf Gateway import terminal on the US Gulf (the world’s first and only offshore LNG import facility) and also the UK’s Teesside GasPort terminal. It has well advanced import project developments in the US near Boston (Northeast Gateway) and in Pakistan (Port Qasim GasPort), together with other project proposals worldwide. Excelerate is an importer of LNG with an entrepreneurial focus on the rapidly-growing LNG spot trading market and the infrastructure required to support LNG deliveries.

At the Teesside GasPort terminal, Excelerate’s specially designed LNG vessels will dock alongside a modified jetty on the River Tees and regasify the LNG before delivering directly into the UK national gas transmission system. This avoids the need for a traditional land based LNG import terminal, minimises capital costs and reduces the time to operation significantly.

Additional information as Download:
IR Release: RWE co-operates with Excelerate Energy in LNG

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