Glencore’s takeover of Orsted LNG effective

1st December 2020 By: Marleny Arnoldi - Creamer Media Online Writer

Glencore’s takeover of Orsted LNG effective

LNG carrier
Photo by: Bloomberg

Diversified miner Glencore on December 1 completed the acquisition of Danish multinational power company Orsted’s liquefied natural gas (LNG) business.

Under the terms of the transaction, Glencore’s oil division has taken over a number of LNG supply contracts, as well as the right to use three-billion cubic metres of annual LNG regasification capacity at the Gate terminal, in Rotterdam, until 2031.

“We are pleased to complete the acquisition of Orsted’s LNG portfolio. We are increasingly focusing on the LNG business as a key part of our oil division strategy and the Orsted transaction represents an important milestone in that journey.

“We see good opportunities in the marketplace and we are excited to continue to grow our LNG marketing portfolio,” says Glencore oil head Alex Sanna.

Orsted in December last year said its LNG business was loss-making and that the transaction with Glencore would enable it to focus on pursuing its renewable energy strategy.