ElectroGas Malta talks on price for LNG bought from SOCAR Trading

Oil&Gas Materials 21 September 2020 09:59
ElectroGas Malta talks on price for LNG bought from SOCAR Trading

BAKU, Azerbaijan, Sept.21

By Leman Zeynalova – Trend:

Based on the tender requirements, the liquefied natural gas (LNG) price for the agreed volume between ElectroGas Malta and SOCAR Trading (trading arm of Azerbaijan’s state oil company SOCAR) is fixed for a five-year period ending on 14 April 2022 and becomes floating thereafter based on the pre-agreed formula for the remaining period of the LNG Agreement, Trend reports with reference to ElectroGas Malta.

“EGM entered into a 10-year LNG Supply and Purchase Agreement with SOCAR Trading, whereby the LNG supplier commits to ship to and sell to EGM the agreed LNG quantities. The LNG cost and pricing are a pass through for EGM, meaning that the cost and price charged to EGM does not affect the profit/loss of EGM,” said the company.

ElectroGas Malta, in which SOCAR is represented by SOCAR Trading that owns a 20-percent share in the consortium, was established to implement the project of construction of a gas power plant in Malta. The other shareholders are Germany's Siemens Project Ventures and Maltese GEM Holdings. SOCAR Trading is also represented in the project as a supplier of LNG, a mobile offshore unit for its storage and equipment for its processing.

SOCAR Trading SA, headquartered in Geneva, was established in late 2007 by the State Oil Company of Azerbaijan.

The company sells SOCAR's crude oil from the port of Ceyhan (Mediterranean Sea, Turkey), trades in oil and petroleum products of other countries, as well as assists the parent company in connection with international investments. The scope of activity of SOCAR Trading covers the countries of Europe, Asia and America.


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