Germany ramps up capacity for LNG imports to replace Russian gas (updated)

Dynagas LNG Partners LP

05/05/2022 11:47

(Adds details, ship charterers identified as Hoegh, Dynagas)
    FRANKFURT, May 5 (Reuters) - Germany on Thursday took steps
to ramp up liquefied natural gas (LNG) imports as it moves away
from piped Russian supply, lining up charters for four floating
storage and regasification units (FSRUs) and choosing the North
Sea port of Wilhelmshaven as the first handling hub.
    The FSRUs are an essential part of Germany's strategy to
diversify away from Russian supply as they will bridge the time
it will take to build four permanent LNG terminals.  urn:newsml:reuters.com:*:nL2N2WT0AG
    Europe's biggest economy relies on piped Russian gas for
almost a third of its supply, imports which totalled 142 billion
cubic metres (bcm) in 2021.  urn:newsml:reuters.com:*:nL5N2VB2LQ    
    Demand for FSRUs has risen sharply as governments across
Europe scramble to find quick ways to secure more LNG.
 urn:newsml:reuters.com:*:nL2N2VP1YP    
    Germany committed to chartering two FSRUs on Thursday
through utility Uniper  UN01.DE  and two 10-year deals with
Norwegian vessel operator Hoegh LNG to be completed by September
or October, which will be operated by Uniper rival RWE
 RWEG.DE . urn:newsml:reuters.com:*:nL5N2WJ2GN  urn:newsml:reuters.com:*:nFWN2WW2B7
    The Economy Ministry last weekend said it wanted four FSRUs
to be sourced from Uniper and RWE to speed the diversification
of the country's energy away from Russian pipeline gas in the
wake of Russia's invasion of Ukraine. urn:newsml:reuters.com:*:nL2N2WT0AG
    The northern deep-sea port of Wilhelmshaven will be the
first location to host arrivals of seaborne LNG already in the
winter of 2022/23.
    The government has earmarked 2.94 billion euros for the
FSRUs.
    Initially, one of the four FSRUs will anchor in
Wilhelmshaven. It will have a capacity of 7.5 billion cubic
metres per year, equivalent to 8.5% of total German gas demand.
    The other three will each have at least 5 bcm capacity, a
joint statement by the Berlin economy ministry and Lower
Saxony's environment ministry said. 
    The two Uniper ships will be chartered from vessel supplier
Dynagas.
    The gas arriving in Wilhelmshaven will be fed into Germany's
pipeline grid via ship-to-onshore links to be provided by
Niedersachsen Ports GmbH & Co. KG (NPorts) and in close
cooperation with Uniper.
    In the longer term the aim is to be able to switch to
renewable gas and clean hydrogen at the site, in line with
Germany's climate protection commitments.
    Uniper will invest 65 million euros ($68.82 million) in the
project.
    Chief Executive Klaus-Dieter Maubach said Uniper would
leverage its "expertise as a global LNG protagonist and gas
trader."
    A connection line from the port to existing long-distance
gas transport pipelines and underground storage caverns is being
built by regulated pipeline company OGE. urn:newsml:reuters.com:*:nL5N2W649W urn:newsml:reuters.com:*:nL5N2WO21Z
    ($1 = 0.9445 euros)

 (Reporting by Vera Eckert, additional reporting by Nora Buli,
editing by Elaine Hardcastle)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))