CEZ expands LNG business with new shipment

Czech utility CEZ has expanded its LNG business by arranging an entire delivery of US LNG, including the charter of a Knutsen-owned LNG carrier, to the Dutch Eemshaven FSRU-based LNG terminal.

According to a CEZ statement issued last week, the 2023-built 174,000-cbm, Gordon Waters Knutsen, owned by Norway’s Knutsen and chartered by France’s Engie, delivered the LNG cargo to the Eemshaven LNG hub.

Gordon Waters Knutsen’s AIS data showed that the vessel brought the cargo some two weeks ago from Cheniere’s Corpus Christi LNG terminal in Texas to Eemshaven.

CEZ said that this is the first time that the company has taken care of the entire voyage of the LNG shipment.

“Until now, the energy company has always ordered LNG as a complete service and only took delivery of the cargo at the Eemshaven terminal,” it said.

“Now, CEZ experts were in charge of the entire navigation and logistics chain, i.e. negotiations with the liquefaction terminal in the US, chartering the ship, loading in the US, and the actual journey across the Atlantic Ocean and return of the ship,” CEZ said.

“By mastering another part of the LNG handling process, CEZ further strengthens its know-how in commodity trading and thus the energy security of the Czech Republic,” the company said.

51 shipments

CEZ previously booked regasification capacity at Gasunie’s and Vopak’s LNG import hub in Eemshaven and received the first LNG cargo via the terminal, which consists of two FSRUs, in September 2022.

The company took 3 bcm per year of the terminal’s total capacity for a period of five years.

So far, 51 ships have arrived at the Dutch terminal with about 4.6 bcm of gas destined for the Czech market, according to the firm.

In November 2023, CEZ booked long-term capacity at Hanseatic Energy Hub’s Stade LNG import terminal in Germany.

Last year, HEH announced a final investment decision on the facility worth about 1 billion euros ($1.13 billion).

Starting in mid-2027, CEZ will import 2 bcm per year of LNG via the terminal near Hamburg.

The capacity at the terminal has been leased for 15 years, with an option to extend this to 25 years in connection with the future use of green hydrogen, according to CEZ.

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