Orsted has signed an agreement to offload its liquified gas business to natural resources company Glencore.
The transaction includes an unspecified payment from the Danish company to Glencore that “will result in a lose that exceeds” current provisions related to LNG activities, Orsted said.
However, the deal will have a positive impact on the offshore wind giant’s EBITDA guidance from 2020 while guidance for this year remains unchanged.
Completion of the agreement is dependent on a number of conditions and is expected in the summer of 2020.
The business, which consists of the long-term regasification capacity agreement with the Gate terminal in Rotterdam and five LNG purchase agreements, has been loss-making and will remain so for “years to come”, said Orsted.
“With Ørsted’s global expansion in renewable energy, it is clear that LNG trading will not be a part of Ørsted’s future core business, and it is therefore being divested,” added the Copenhagen-based developer.