Ørsted sells LNG business to Glencore
Danish renewable energy company Ørsted has signed an agreement to divest its liquefied natural gas (LNG) business to natural resources company Glencore.
In December 2007, Ørsted entered into a long-term agreement with the Dutch LNG regasification terminal Gate in Rotterdam regarding the right to use 3 billion cubic metres of annual regasification capacity from 2011 to 2031, Ørsted noted in its statement on Thursday.Maybe Bayer can use this kind of financial wizardry to get rid of Monsanto.
Today, Ørsted’s LNG business consists of the long-term regasification capacity agreement with the Gate terminal in Rotterdam and five LNG purchase agreements.
Even though Ørsted’s LNG team has performed well during the last few years, the business has been loss-making and is projected to remain so for years to come, the company said, adding that further financial improvements would require further contractual commitments.
With Ørsted’s expansion in renewable energy, it is clear that LNG trading will not be a part of Ørsted’s future core business, and it is therefore being divested, the company said.
The transaction entails a payment from Ørsted to Glencore....
