Danish renewable energy company Ørsted has completed the sale of its liquefied natural gas (LNG) business to Glencore.
Ørsted has divested its LNG business due to the company’s strategic focus on renewable energy.
Included in the agreement is Ørsted’s long-term agreement with the Dutch LNG regasification terminal Gate in Rotterdam regarding the right to use 3 billion cubic meters of annual regasification capacity from 2011 to 2031. The company entered the deal in 2007.
In addition to the long-term regasification capacity agreement with the Gate terminal in Rotterdam, its LNG business includes five LNG purchase agreements.
In its initial statement from December 2019 , LNG trading will not be a part of Ørsted’s future core business, and it is therefore being divested.
The transaction entails a payment from Ørsted to Glencore and will result in a loss that exceeds its current provision related to the LNG activities.