German energy company Uniper and Tourmaline Oil Corp., Canada’s largest producer of natural gas, have finalized an eight-year physical gas agreement for 80,000 Metric Million British Thermal Units (MMBtu) per day beginning in November 2028. The estimated lifetime total volume of the transaction is 234 billion cubic feet (bcf) [which equals approx. 6.6 billion cubic meters (bcm)].
Under the LNG Netback Supply Agreement, Tourmaline will deliver gas to the ANR SE trading hub in southeast Louisiana, USA. The contract is based on TTF (Dutch Title Transfer Facility) pricing, providing Tourmaline with international price exposure.
The agreement comes just a few months after Uniper signed a separate LNG sale-and-purchase agreement for up to 2.0 million tonnes per annum (mtpa) with Woodside Energy. That transaction included LNG supply commitments for 1.0 mtpa from Woodside’s US-based Louisiana LNG production and export terminal, which is currently under development.
Carsten Poppinga, Chief Commercial Officer, Uniper SE said the innovative agreement with Tourmaline leverages Uniper’s global energy trading capabilities and expertise in LNG markets to the benefit of both parties. He said it also represents an important expansion of Uniper’s supply sourcing capacity in North America.
'We are extremely pleased to close this deal with one of Canada’s most respected gas producers. It showcases our ability to offer important international pricing exposure to a valued North America supplier and further diversifies Uniper’s LNG supply sourcing portfolio, an important aspect of our European security of supply objectives,' said Carsten Poppinga, CCO Uniper.
'This long-term supply agreement with Uniper supports the continued execution of our market diversification strategy. We’re proud to be supplying Canadian natural gas to meet rising demand in international markets and to enhance European energy security,' said Mike Rose, Tourmaline’s President and CEO.
Source: Uniper
