- Endesa and GasLog, signed an eight-year charter agreement for the maritime transport of the company’s LNG acquisitions after May 2021.
- Endesa will receive the LNG carrier in September for the start of its commercial operations later this year.
- The Gaslog Warsaw will have an LNG storage capacity of 180,000 cubic meters in its four cryogenic tanks.
- It will be capable of transporting LNG volumes equivalent to Spain’s total daily demand, or the annual supply of 170,000 Spanish households.
Endesa and GasLog, signed an eight-year charter agreement for the maritime transport of the company’s LNG acquisitions after May 2021, on Thursday, reports AA Energy.
About the contract
According to the statement of the Madrid-based energy company, the agreement has two optional six-year extension periods. Endesa will receive the carrier in September for the start of its commercial operations later this year. This will happen once the liquefaction plant has received the permits required to start up its first LNG train.
“This will become Endesa’s second LNG carrier, which will guarantee the transport and management of a 2 billion cubic meters per year of LNG. Endsea acquired the LNG in 2014 from U.S. gas company Cheniere Energy. They shipped it from the Port of Corpus Christi in Texas, U.S.,” it said.
The Gaslog Warsaw
The Gaslog Warsaw will have an LNG storage capacity of 180,000 cubic meters in its four cryogenic tanks. It can be used to store gas in a liquid state at a temperature of -160ºC.
The carrier will sail under a Greek flag and will be built at the Samsung Heavy Industries shipyard in Korea. It will be capable of transporting LNG volumes equivalent to Spain’s total daily demand, or the annual supply of 170,000 Spanish households.
About the Ship
“The ship also features an onboard, partial re-liquefaction system that can reduce its gas consumption; allowing it to choose the type of fuel it will use, either 100 percent natural gas or low-sulfur fuel oil; making it much more eco-friendly than most ship engines that use oil-derived fuels, greatly reducing its emissions,” the statement read. It is also equipped with onboard nitrogen oxide emission reduction systems.
A change in Strategy
According to the press release, until the signing of this agreement, Endesa acquired LNG for direct delivery at ports. “With the new strategy, the company will manage the maritime transport of LNG by signing long-term contracts for newly-built LNG carriers; allowing it to manage gas from the source to its destination,” it said.
According to Jose Bogas, CEO of Endesa, this change in strategy involves acquiring LNG from the source and signing charter agreements to guarantee the availability of LNG carriers for maritime transport. It will allow Endesa to cater to its gas supply requirements over the next 20 years with much more flexible and competitive options.
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Source: AA Energy