Orsted will offload its liquefied gas business to natural resources company Glencore, according to the agreement signed, with the transaction said to close in the summer of 2020.
Specifically, the transaction consists of an unspecified payment from the Danish company to Glencore which will lead in a loss that surpasses the current provisions related to LNG activities.
Yet, the agreement will positively affect the offshore wind giant’s EBITDA guidance from 2020 while guidance for this year remains unchanged.
As mentioned above, the agreement will be official by the summer of 2020, under specific conditions.
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Orsted stated that the liquefied gas business, including the long-term regasification capacity agreement with the Gate terminal in Rotterdam and five LNG purchase agreements, has been a “loss-making” and might continue as is in the future.
Concluding, Orsted stated that LNG will not be a part of the company’s future core business, explaining why it is being divested.