Reuters: E.ON, RasGas sign 2 bcm LNG contract over three years

German utility E.ON and Qatari gas producer RasGas have signed a three-year deal for the supply of liquefied natural gas (LNG) to Europe.

The medium-term flexible contract is potentially for up to 2 billion cubic metres over the term, the two firms said in a statement on Wednesday.

LNG is transported by ships and regasified at arrival terminals near its intended consumption, avoiding pipeline fees and disruptions - albeit carrying the cost of its own specific supply chain.

The deal reflects efforts by E.ON - battered in its home market by weak power generation margins and competition from subsidised renewable energy - to expand its international business and to diversify its gas procurement choices.
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