Germany Seeks to Lock In LNG Deals to Avoid Cargo Diversions
- Half of capacity in October auction has delivery obligation
- Companies keen to avoid destination requirement for cargoes
People watch as a LNG regasification ship arrives at Mukran Port in Sassnitz, Germany.
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Germany wants to lock in contracts for liquefied natural gas with a delivery obligation, an effort to deter profit-chasing traders from diverting shipments elsewhere as the nation boosts its commitment to the fuel.
The government plans to include a delivery clause for at least 50% of the capacity offered in an auction next month, the first in a series of similar events for its state-run terminals, according to Peter Röttgen, managing director of Deutsche Energy Terminal GmbH.