Trafigura Gains South Hook LNG Access

Energy trader Trafigura has signed a deal with South Hook Gas Company to gain access to  spare import capacity at Europe's biggest liquefied natural gas (LNG) terminal.

The deal gives Trafigura an option to purchase spare import slots as they become available.

Qatar Petroleum and ExxonMobil have invested $1.6 billion in the South Hook terminal, which they hold 70/30 respectively.

The moves may signal that QatarGas, which currently supplies the terminal, expects to send fewer cargoes to Britain, given the higher potential for profit in diverting supplies to higher-paying markets in Asia.

"QatarGas has always said that its supply is divertible," the spokesman said, adding that diversification of suppliers helps bolster Britain's energy security.

The spare capacity deals are designed to allow other companies the chance to bring in cargoes from other exporting countries such as Trinidad and Algeria.

The company sold spare capacity to ConocoPhillips and Swiss trading firm EGL earlier this year, though no deliveries have been undertaken by those two parties to date.