Exclusive Uniper can swap Australian LNG for Atlantic gas to deliver Europe faster According to Reuters

By Vera Eckert and Marwa Rashad

FRANKFURT/LONDON (Reuters) – Germany’s Uniper is poised to swap liquefied petroleum gas (LNG) it gets from Australia’s Woodside (OTC:) for U.S. gas, so it could boost supplies in Europe faster next winter.

The strategy reflects efforts by companies and governments across Europe to find alternative supply lines and make contingency plans for the winter season, due to concerns that Moscow could completely shut down gas supplies. natural burning.

In the event of a supply shortfall, Uniper could supply LNG to customers in Europe, US LNG to customers in Asia and possibly in the Atlantic, accelerating potential supply.

“Uniper makes every effort to add or redirect existing shipments to Germany. Volumes from Australia can be swapped with volumes originating in the US and currently in the Atlantic and available to Asian buyers in China, India and Japan,” a company spokesperson said.

“We may use that facility next winter, in case volumes are needed for Europe,” the spokesman said, declining to provide details on timing and volume.

Uniper, which has a large wholesale energy exchange with a global reach, said it was in contact with buyers in Asia to potentially free up supplies, replacing them with gas from Woodside in accordance with the following conditions: long-term supply contract.

Tamir Druz, chief executive officer of Capra Energy, an LNG consulting firm, said: “By exchanging its Australian goods for US-sourced supplies, Uniper will cut deliveries by less at least 10 days”.

“This not only greatly reduces shipping costs, but also reduces cargo/heel boils and in fact allows Uniper to receive a bit more volume, around 1%-2%,” he said. ,”.

Russia since mid-June has sharply cut flows to Europe via the Nord Stream 1 pipeline and currently supplies only 20% of the agreed volume, blaming faulty equipment and delays, while Europe allows that the move was politically motivated.

Uniper, Germany’s largest Russian gas importer, and Woodside have doubled their existing 13-year contract from 2021 to 1 million tonnes per year (mtpa) of LNG. That is because it will continue to increase to 2 million tons from 2026.

In addition to helping to meet soaring demand for LNG to replace Russian gas pipelines during the energy supply crisis, Uniper’s plan will have beneficial side effects on the environment, the spokesperson said. The goal is to avoid the distances that need to be traveled by LNG vessels.

Germany is desperate to find alternatives to gas from Russia, its main supplier, and has approached Qatar as a potential supplier, but sources told Reuters the talks Negotiations between the two sides were in trouble.

Uniper’s larger peer-to-peer RWE on Thursday said it is talking to a number of potential LNG suppliers, not just Qatar and North America, as the group expands its network to potential deals.