Friday, December 7, 2007
Germany’s RWE in exclusive talks to take 50% in Excelerate Energy
7 December 2007
European Spot Gas Markets
German utility RWE is in exclusive talks to take 50% of American LNG company Excelerate Energy, a source close to the negotiations told Heren Energy on Friday. Excelerate c.e.o. Rob Bryngelson told Heren Energy exclusive discussions were taking place, but declined to comment further on the deal.
Cooperation between the sides would give RWE access to existing LNG import infrastructure at low cost, and would give Excelerate access to downstream European markets. The two companies are already working together on a number of projects. In 2006, RWE Trading signed an agreement with Excelerate to market all the gas the latter delivers to its GasPort facility in Teesside, UK. In addition, the companies have commissioned a feasibility study for an LNG terminal in Wilhelmshaven, northwest Germany.
Excelerate already owns an offshore LNG terminal, Gulf Gateway, in the US Gulf of Mexico. Bryngelson told Heren Energy on Friday that its second US project, Northeast Gateway, is finished, but the company has not yet sourced a commissioning cargo. Excelerate has no equity LNG production, and has to buy on the spot market. KTV/LB
