Trading and chartering giant Trafigura has clinched a $3bn loan package to bolster its LNG imports into Germany.
The four-year facility was jointly arranged and underwritten by Deutsche Bank and another unnamed international lender as Germany tries to wean itself off Russian energy.
The loan has been syndicated to more than 25 banks and was oversubscribed by 60%.
Part of the amount is secured by a guarantee under Germany’s Untied Financial Loan programme through the export credit agency Euler Hermes.
The scheme is a tool to secure the long-term delivery of strategic commodities to Germany.
The cash will help Trafigura deliver “substantial volumes” of gas into the European gas grid and ultimately into Germany, the Swiss trader said.
The group will supply the gas to Securing Energy for Europe, a Berlin-based conglomerate of energy companies recently recapitalised by the German government.
The first gas delivery was on 1 November. Trafigura will primarily use existing quantities from its global gas and LNG portfolio.
The agreement included a review of Trafigura’s environmental, social and governance policies and performance.
Extensive portfolio
“We are proud to be contributing to Europe’s energy security by supplying this significant volume of gas to Germany backed by our extensive portfolio and long-term US LNG contracts,” said Richard Holtum, head of gas and power trading for Trafigura.
All eyes are on Germany as it moves ahead with ambitious plans to fire up at least half of its six to seven floating storage and regasification unit-based LNG import projects.
TradeWinds reported last month that an LNG floating storage unit (FSU) and three small vessels that will support TotalEnergies and Deutsche ReGas’ new FSRU-based import project have been identified.
A range of shipping sources told TradeWinds that the 140,500-cbm steam turbine LNG carrier Seapeak Hispania (ex-Hispania Spirit, built 2002) is to be deployed as an FSU to serve the Deutsche Ostsee LNG terminal project being started up in the draught-restricted harbour area of Lubmin.
In October, Trafigura clinched big state backing from Germany to import metals.
It said it has entered into an $800m loan over five years to supply up to 500,000 tonnes of non-ferrous metals to the country.
The finance was underwritten and arranged by French lender Societe Generale and syndicated to seven participating banks.
