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Liquid gas deliveries: Federal government assumes billion guarantee

2022-12-05T11:27:06.132Z

Germany is building LNG terminals at high pressure to replace Russian pipeline gas. To ensure that enough liquid gas is supplied, the energy trader Trafigura is now receiving a state-backed billion-euro loan.



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Work on LNG pipes in Lower Saxony: new liquid gas after Russian delivery stops

Photo: Sina Schuldt / dpa

Germany is making further efforts to import liquefied natural gas (LNG) to partially replace Russian gas supplies.

According to the Ministry of Economic Affairs, the federal government is guaranteeing a deal by energy trader Trafigura to supply LNG to the German company Securing Energy for Europe (Sefe).

The loan guarantee in the billions had already been taken over in October, it said on request.

Sefe was previously known as Gazprom Germania, the German subsidiary of the Russian energy company.

In November, the German government announced that it would nationalize the company.

Trafigura said it received a four-year, $3 billion loan from a consortium of banks involving more than 25 banks in the successful operation.

The loan is partially secured by a federal guarantee.

Trafigura had already received a guarantee from the German state for the delivery of metals months ago.

At that time, according to the group, it was about 800 million dollars with a term of five years.

Germany is building LNG terminals

According to the Economics Ministry, such loans are intended to support the supply of raw materials to the German economy.

"For this purpose, a federal guarantee is given in favor of a bank that grants a foreign company a loan to carry out a raw material project or to support its general business activities." A prerequisite is the conclusion of a long-term raw material import contract with a German company.

"We are proud to contribute to Europe's energy security," said Richard Holtum, head of gas and electricity trading at Trafigura.

Germany will be supplied with a significant amount of gas, "which is secured by our extensive portfolio and long-term US LNG contracts".

In Germany, LNG terminals are being built at full speed to replace the missing Russian pipeline gas.

The background is a delivery stop by the state-owned company Gazprom as a result of the Russian war of aggression.

rai/dpa

Source: spiegel

All business articles on 2022-12-05

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