Gaz de France Secures Long Term Access to the US LNG Market
PARIS--Regulatory News:
Gaz de France (Paris:GAZ) has signed with the US Group Cheniere Energy Inc. agreements providing it with long-term access to the American LNG market.
Under these agreements Gaz de France will be entitled to deliver 12 shipments of LNG per year, over a period of 15 years, at the Sabine Pass LNG receiving terminal in the US, which will be commissioned in the near future.
Cheniere Energy Inc. will have the option to deliver 12 cargoes of LNG per year to Gaz de France at the Isle of Grain LNG terminal, in the UK, where Gaz de France holds import capacity.*
These agreements will allow both Groups to further develop their transatlantic arbitrage capacity.
They will come into force once the Sabine Pass terminal has been commissioned (scheduled for the second quarter of 2008) and once the expansion work on the Isle of Grain terminal has been concluded.
Gaz de France is the largest European importer, and the world's 3rd largest importer of LNG, which accounted for 30% of the Group's long-term supplies in 2006. The strength and diversity of the LNG supply portfolio of Gaz de France, along with its sea transport capacity, also allow the Group to seize short-term commercial opportunities.
Gaz de France wishes to develop and strengthen its LNG position on the US market. The agreement with Cheniere is a significant step in this direction.
Jean-Marie Dauger, Chief Operating Officer of Gaz de France, said:
"As the largest European LNG operator, Gaz de France is consolidating its access to the Gulf of Mexico thanks to these agreements. The Group is now present in all the major LNG markets and its fleet - which includes the two largest LNG carriers in the world - enables it to proceed with arbitrages on the final destination of its cargoes. This operation is all the more promising as Cheniere is substantially developing its regazification capacity, thereby offering even better access to the American market."
* In 2005, Gaz de France signed an agreement giving it access to regazification capacity of 2.4 million tons of liquefied natural gas per year in the Isle of Grain terminal starting in 2008-2009 and for a period of 20 years.
Charif Souki, Chairman and CEO of Cheniere, made the following statement:
"The increasing connectivity between the European and North American gas markets will require new business models and creative agreements. Gaz de France's position in Western Europe perfectly complements Cheniere's position in the Gulf of Mexico to give both companies increased flexibility and access to premium markets. We are delighted by this important strategic step and will look forward to continue to develop a strong cooperation with Gaz de France."
Company profile:
The Gaz de France group is a major player in the European energy market. Ranked first in the distribution of natural gas in Europe, Gaz de France employs more than 50,000 people and, in 2006, generated sales of 27.6 billion. The Group boasts a portfolio of 13.9 million customers, 11.1 million of whom are based in France. Listed on the Paris Bourse in July 2005, Gaz de France entered the CAC40 and the Dow Jones Stoxx 600 indexes in September 2005.
Contacts
Gaz de France
Sabine Wacquez, +331 47 54 24 43
sabine.wacquez@gazdefrance.com
Gaz de France (Paris:GAZ) has signed with the US Group Cheniere Energy Inc. agreements providing it with long-term access to the American LNG market.
Under these agreements Gaz de France will be entitled to deliver 12 shipments of LNG per year, over a period of 15 years, at the Sabine Pass LNG receiving terminal in the US, which will be commissioned in the near future.
Cheniere Energy Inc. will have the option to deliver 12 cargoes of LNG per year to Gaz de France at the Isle of Grain LNG terminal, in the UK, where Gaz de France holds import capacity.*
These agreements will allow both Groups to further develop their transatlantic arbitrage capacity.
They will come into force once the Sabine Pass terminal has been commissioned (scheduled for the second quarter of 2008) and once the expansion work on the Isle of Grain terminal has been concluded.
Gaz de France is the largest European importer, and the world's 3rd largest importer of LNG, which accounted for 30% of the Group's long-term supplies in 2006. The strength and diversity of the LNG supply portfolio of Gaz de France, along with its sea transport capacity, also allow the Group to seize short-term commercial opportunities.
Gaz de France wishes to develop and strengthen its LNG position on the US market. The agreement with Cheniere is a significant step in this direction.
Jean-Marie Dauger, Chief Operating Officer of Gaz de France, said:
"As the largest European LNG operator, Gaz de France is consolidating its access to the Gulf of Mexico thanks to these agreements. The Group is now present in all the major LNG markets and its fleet - which includes the two largest LNG carriers in the world - enables it to proceed with arbitrages on the final destination of its cargoes. This operation is all the more promising as Cheniere is substantially developing its regazification capacity, thereby offering even better access to the American market."
* In 2005, Gaz de France signed an agreement giving it access to regazification capacity of 2.4 million tons of liquefied natural gas per year in the Isle of Grain terminal starting in 2008-2009 and for a period of 20 years.
Charif Souki, Chairman and CEO of Cheniere, made the following statement:
"The increasing connectivity between the European and North American gas markets will require new business models and creative agreements. Gaz de France's position in Western Europe perfectly complements Cheniere's position in the Gulf of Mexico to give both companies increased flexibility and access to premium markets. We are delighted by this important strategic step and will look forward to continue to develop a strong cooperation with Gaz de France."
Company profile:
The Gaz de France group is a major player in the European energy market. Ranked first in the distribution of natural gas in Europe, Gaz de France employs more than 50,000 people and, in 2006, generated sales of 27.6 billion. The Group boasts a portfolio of 13.9 million customers, 11.1 million of whom are based in France. Listed on the Paris Bourse in July 2005, Gaz de France entered the CAC40 and the Dow Jones Stoxx 600 indexes in September 2005.
Contacts
Gaz de France
Sabine Wacquez, +331 47 54 24 43
sabine.wacquez@gazdefrance.com
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