DONG Energy and Iberdrola Close LNG Agreement (The Netherlands)
DONG Energy and Iberdrola have signed the detailed supply agreement – following the signing of the commercial terms as announced earlier this year – for Iberdrola to deliver LNG (Liquefied Natural Gas), corresponding to approximately 1 billion m3 of natural gas per year to DONG Energy.
It is a ten-year delivery agreement, which includes an option for a five-year extension, and the deliveries will begin from late 2011.
The LNG will be delivered to Gate terminal in the port of Rotterdam.
DONG Energy is co-owner of the terminal and has 3 billion m3 of the terminal import capacity at its disposal per year.
The terminal is currently under construction and is expected to be in operation during the course of 2011.
This is the first LNG contract signed by DONG Energy and the first long term contract for the supply of LNG into the Dutch market.
The content of this announcement does not alter the previously announced expectations for DONG Energy’s financial result for 2010 or the announced expected level of investments.
Source: DONG Energy, August 12, 2010;