Danish energy firm Ørsted has signed an agreement to divest its liquefied natural gas business to commodity trading giant Glencore.
Ørsted’s LNG business currently consists of the long-term regasification capacity agreement with the Gate terminal in Rotterdam and five LNG purchase agreements.
According to Ørsted, its LNG business has been loss-making and is projected to remain so for years to come. Further financial improvements would require further contractual commitments.
“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,” the company said in a release.
The deal will result in a loss for Ørsted and the company expects to complete the transaction in the summer of 2020.
