'Under the LNG Netback Supply Agreement, Tourmaline will deliver gas to the ANR SE trading hub in southeast Louisiana, USA'.
The agreement is structured under a Liquefied Natural Gas (LNG) Netback Supply model, which ties pricing to the Dutch Title Transfer Facility (TTF), giving Tourmaline access to international market prices. This contract represents a key step in Tourmaline’s ongoing efforts to diversify its market reach.
Tourmaline president and CEO Mike Rose stated: “This long-term supply agreement with Uniper supports the continued execution of our market diversification strategy. We’re proud to be supplying Canadian natural gas to meet rising demand in international markets and to enhance European energy security.”
Carsten Poppinga, chief commercial officer at Uniper, highlighted the importance of the agreement for the company’s strategy: “The deal further diversifies Uniper’s LNG supply sourcing portfolio, an important aspect of our European security of supply objectives.”
Earlier this year, Uniper sold its power assets in North America, while retaining its gas-related holdings and hydrogen initiatives. The divestment supports compliance with competitive conditions set by the European Commission, which were part of the approval process for Uniper’s bailout by the German government in late 2022.
According to a February 5 press release, the divested assets included power purchase and sale contracts and energy management agreements across various North American markets. These regions include ERCOT (covering North, South, West, and Houston), WEST (WECC and CAISO), and CENTRAL (MISO and SPP). Uniper did not disclose the identities of the buyers involved in these transactions.
The Tourmaline agreement follows a separate supply commitment Uniper made with Australia’s Woodside Energy Group Ltd. three months earlier. Under that arrangement, Uniper agreed to purchase one million metric tons per annum (MMtpa) of LNG for 13 years from Woodside’s Louisiana LNG facility. The deal also includes an option for up to an additional one MMtpa from Woodside’s global portfolio, starting from the facility’s operational launch until 2039.
The Louisiana LNG project, situated in Calcasieu Parish, is currently under construction. It holds a U.S. Department of Energy permit to export up to 27.6 MMtpa of LNG, equivalent to 1.42 trillion cubic feet of natural gas annually. On April 29, Woodside announced a positive final investment decision (FID) for Phase I of the project. This phase includes the development of three liquefaction trains with a combined capacity of 16.5 MMtpa, targeted for startup in 2029.
