Factbox: Germany builds up LNG import terminals

Fluxys Belgium SA

02/08/2023 12:33

(Leads with new state aid approved by EU Commission for
Brunsbuettel, adds ship arrival under Stade heading)
       FRANKFURT, Aug 2 (Reuters) - The EU Commission has
approved a 40 million euro ($43.9 million) support measure for
the land-based liquefied natural gas (LNG) terminal at Germany's
Brunsbuettel on the North Sea, citing its contribution to the
security and diversification of supply.
    Germany's quest to build up LNG import capacity has
intensified as it seeks to end reliance on Russian pipeline gas
after Russia invaded Ukraine last year. 
    Pending the provision of fixed terminals, it is using
floating storage and reception units (FSRUs) to help replace
piped Russian gas supply.
    Three FSRUs are working at Wilhelmshaven, Brunsbuettel and
Lubmin after Germany arranged their charter and onshore
connections in record time. Wilhelmshaven, Mukran and Stade are
due to add more ships for the 2023/24 winter.
    Industry and the government are also building up terminal
capacity in anticipation of increased use of hydrogen, which
when produced using renewable energy can help the transition to
a lower carbon economy.
    
    MUKRAN
    Deutsche ReGas has sub-chartered a second FSRU from Transgas
Power, with regasification capacity of 7.5 billion cubic metres
(bcm), in a fresh step towards building up a new terminal at
Mukran in the Baltic Sea. 
    LNG from Mukran is meant to flow to onshore grids via the
nearby port of Lubmin from next winter. The project has
triggered some local opposition.
    
    WILHELMSHAVEN
    Utility Uniper  UN01.DE  launched Germany's first FSRU
operations last December at the deep-water port on the North
Sea.  LNG/TKUK 
    It plans to add a land-based ammonia reception terminal and
cracker in the second half of this decade. Ammonia is sometimes
used as a carrier for hydrogen, whose low density otherwise
makes its transportation over long distances complicated.
    Tree Energy Solutions (TES) will operate a second FSRU from
later in 2023 for five years, and plans to eventually convert
the operations to clean gases.
    
    LUBMIN
    The FSRU Neptune, chartered by Deutsche ReGas, began
receiving LNG at Lubmin early this year. The gas is delivered to
another storage vessel, the Seapeak Hispania, and shuttled to
Lubmin in a set-up taking account of shallow water.
    ReGas holds long-term supply deals with France's
TotalEnergies  TTEF.PA  and trading group MET.
    The government wants the Neptune to move to Mukran, allowing
the Seapeak Hispania to depart, and joining a second FSRU there,
the Transgas Power. ReGas is tendering for LNG supplies to
Mukran.
    However, gas grid company Gascade needs to link Mukran via
Lubmin to the mainland gas grids, making it hard to narrow down
the likely start date of the project more closely than to the
three months from December to February next year.
    
    BRUNSBUETTEL
    The Brunsbuettel FSRU, operated by RWE's trading arm on the
North Sea coast, became operational in mid-April.
    It is the forerunner of a land-based LNG facility, now in
receipt of a parcel of approved state support, that could start
operations at the end of 2026, when an adjacent ammonia terminal
could also start up. State bank KfW  KFW.UL , Gasunie and RWE
are stakeholders and Shell  SHEL.L  has committed itself to
sizeable purchases.
    The total costs for the land-based terminal are 1.3 billion
euros.
    
    STADE
    The inland port on the river Elbe in January started work on
a landing pier for an FSRU, to be ready in the winter of
2023/24. Designated vessel Transgas Force is now moored at
Bremerhaven port to be fixed up for the purpose.
    Project firm Hanseatic Energy Hub (HEH) also plans a
land-based terminal where it has allocated regasification
capacity that could be operational in 2027, including volumes
for state-controlled Sefe and utility EnBW  EBKG.DE . 
    It has begun sounding out the market to determine whether
the longer-term plans should be based largely on ammonia to be
reconverted into clean hydrogen. It has identified a
construction consortium.
    HEH is backed by gas network company Fluxys  FLUX.BR , 
investment firm Partners Group  PGHN.S , logistics group Buss
and chemicals company Dow  DOW.N .
    EnBW, which is also a buyer at Wilhelmshaven and
Brunsbuettel, said it would double annual purchases to 6 bcm.

($1 = 0.9116 euros)

 (Reporting by Vera Eckert; Editing by Barbara Lewis and Jan
Harvey)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))