Germany builds up LNG import terminals
Updates with links to gas transit story, court validating Lubmin's permits, electrolysis plans at Stade and Wilhelmshaven
Nov 19 (Reuters) -Germany is expanding its natural gas import options to replace Russian supply, whose suspension on the route to Austria has set European energy markets on edge, and as part of its decarbonisation efforts.
Below are details on terminals being developed to host floating storage regasification units (FSRUs) to receive seaborne liquefied natural gas (LNG). Plans also include shore-based regasification terminals and facilities to import and produce ammonia and hydrogen.
STADE
State-owned Deutsche Energy Terminal (DET) has said in German media reports that FSRUs at both Stade and Wilhelmshaven 2 will start operations before the winter, without specifying precise commissioning dates.
On June 28, developers at the Elbe river inland port of Stade formally inaugurated a land-based "ammonia ready" terminal for start in 2027, for which a final investment decision was taken by Hanseatic Energy Hub (HEH) in March.
The FSRU Energos Force arrived on March 15 and is expected to operate until 2027, ahead of the onshore terminal starting operations.
The onshore terminal, to be built by Spain's Tecnicas Reunidas TRE.MC, is expected to cost around 1 billion euros ($1.1 billion).
Gas to arrive there has been allocated to state-controlled SEFE, utility EnBW EBKG.DE and Czech utility CEZ CEZP.PR.
HEH is backed by investment firm Partners Group PGHN.S, logistics group Buss, chemicals company Dow DOW.N, and Spanish grid operator Enagas.
A separate, Buss-led, consortium is nurturing plans for a 100 megawatt (MW) electrolysis plant, to be decided on in 2026, it said on Nov. 18.
WILHELMSHAVEN
Utility Uniper UN01.DE launched Germany's first FSRU operation, Wilhelmshaven 1, on the North Sea, in 2022. LNG/TKUK
Uniper plans two green gas systems in the longer term: it will add a land-based ammonia import reception terminal and cracker in the second half of this decade to make green hydrogen.
On Nov. 18, it said it had picked U.S. manufacturer Electric Hydrogen as supplier of a 200 MW electrolyser to be fed with local wind power.
Another operator, Tree Energy Solutions (TES), plans to operate the second FSRU, Wilhelmshaven 2, from winter 2024, through to 2027, and plans to eventually convert its operations to clean gases.
BRUNSBUETTEL
The Brunsbuettel FSRU went into operation in April 2023 on the North Sea coast, initially chartered and operated by utility RWE's RWEG.DE trading arm before it was handed over to DET at the start of 2024.
It is the forerunner of a land-based LNG facility which has been cleared to receive 40 million euros of state support.
It could start operations at the end of 2026, when a newly inaugurated, adjacent ammonia terminal could also start up.
State bank KfW, Gasunie and RWE are stakeholders and Shell SHEL.L has committed to sizeable purchases.
MUKRAN
Mukran, on Ruegen island in the Baltic Sea, will supply onshore grids via pipeline firm Gascade's new OAL pipeline with LNG.
Private company Deutsche ReGas started reloading services from the LNG tanker Coral Energy in September, using smaller tankers to deliver LNG to locations without pipeline access.
This followed the opening of regular operations at the site with FSRUs Energos Power and Neptune.
Gascade completed the 50 km (30 miles) infrastructure in February and feed-in is possible, with existing onshore pipelines NEL and EUGAL offering long-distance transport.
ReGas holds long-term supply deals with France's TotalEnergies TTEF.PA and trading group MET.
The Mukran project has triggered local opposition, but legal challenges have been thrown out.
LUBMIN
ReGas and LNG-tanker operator Hoegh in June signed an agreement to develop the Baltic Sea port, a forerunner of Mukran, into an ammonia/hydrogen import terminal.
On Oct. 14, the Federal Administrative Court backed Lubmin's operations, throwing out a case brought by environmental group DUH against its permit.
Gascade has created a grid connection to the Eugal 1 and 2 onshore gas pipelines.
($1 = 0.9462 euros)
Reporting by Vera Eckert; Editing by Ros Russell and Mark Potter
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.