VERBUND accompanied Poweo in the bidding process aiming to ensure the access to gas for its own power generation projects in Europe and to expand its gas business.
The planned LNG-terminal is aligned to a capacity of 8-10 billion m³ liquefied natural gas in the first stage (more than Austria’s consumption/year) and could start running in 2011 upon finalisation of corresponding detailed feasibility studies. The investment for the planned asset is valued at 500 million Euro. Negotiations with potential LNG suppliers are under way and are to be finalised upon acceptance of the bid.
Poweo and C.I.M. succeeded in the bidding process against important European players. Apart from the state-owned oil infrastructure company C.I.M. Poweo was chosen as the only strategic partner from the energy sector.
The investment is a very attractive option, since the costs for liquefaction of natural gas, the shipping and the following reimplementation into the pipeline net have declined over the past years. Europe’s supply with liquefied natural gas is currently provided primarily by the Middle East and North Africa.
The acceptance of the bid does not only reinforce VERBUND’s engagement in France, but also provides the opportunity to further pursue other generation projects in Europe. It also creates another player in the competition for Europe’s gas supply and will add to general security of supply in Europe.