Does BP Sale, E.ON Deal Hint at Switch From Pipelines to LNG?

While Skangass’ workers celebrated the €86 million Pori LNG import terminal with a topping up ceremony, big names of the British gas industry equally showed an increasing focus on LNG.

“Excellent progress has been made in the work, and the weather has also been on our side” Project Manager Stanislav Lysak from Gasum commented in a note, not elaborating on when the structure would be ready to receive LNG. 

A few hours before, on Thursday, E.ON Global Commodities have entered into a 20-year gas sales agreement to buy up to two million tons of regasified LNG per year from Meridian LNG. 

‘Under the terms of the gas sales agreement, EGC will also have the opportunity to purchase incremental volumes should they be made available, of up to 750 million standard cubic feet a day, the estimated maximum daily throughput of the Port Meridian terminal’ E.ON wrote on Thursday, adding that Meridian LNG is expected to deliver gas through tis planned Port Meridian import and regasification terminal.

BP SELLS STAKE IN CATS FOR £324 MILLION

Also on Thursday, BP agreed to sell its stake in the Central Area Transmission System to Antin Infrastructure Partners for £324 million ($486 million), explaining that the sale will not impact BP’s right to capacity in the gas pipeline and that it should complete the sale and the transfer of the operatorship by the end of the year.

“The North Sea is an important region for BP… Key elements of this [strategy] are the completion of our major projects in the central North Sea and Shetland area, and continued management of our portfolio” Trevor Garlick, Regional President BP North Sea said on Thursday.