Factbox: Germany builds up LNG import terminals

Fluxys Belgium SA

18/10/2023 15:35

(.)
       FRANKFURT, Oct 18 (Reuters) - State-owned Deutsche
Energy Terminal will hold two auctions for short-term
regasification capacities in 2024 at liquefied natural gas (LNG)
terminals at Brunsbuettel and Wilhelmshaven 1 on October 16 and
23, it said.
    Another auction round in December will offer additional
short-term capacities to market participants at the German Stade
and Wilhlemshaven 2 terminals.
    Germany's quest to increase 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, Germany is using
floating storage and regasification terminals (FSRUs) to help to
replace piped Russian gas supplies.
    Three FSRUs are working at the Wilhelmshaven, Brunsbuettel
and Lubmin ports after Germany arranged their charter and
onshore connections. 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 at the
sites, which when produced using renewable energy can help the
transition to a lower carbon economy.
    
    MUKRAN
    Operator Deutsche ReGas reported in August that suppliers
have booked 4 billion cubic metres (bcm) of capacity for 10
years per annum at Mukran on Ruegen Island in the Baltic Sea,
where the company wants to pull together two FSRUs for
deliveries to the mainland.
    Deutsche ReGas has sub-chartered a second FSRU from Transgas
Power, with regasification capacity of 7.5 billion cubic metres
(bcm), to complement the Neptune currently active at Lubmin.
    LNG from Mukran is meant to flow to onshore grids via a new
pipeline being built by Gascade from the first quarter of 2024. 
    The project has triggered local opposition. But two legal
challenges by environmental groups DUH and Nabu were thrown out
by the federal administrative court last month.
    
    WILHELMSHAVEN
    Utility Uniper  UN01.DE  launched Germany's first FSRU
operations, Wilhelmshaven 1, last December at the deep-water
port on the North Sea.  LNG/TKUK 
    Tree Energy Solutions (TES) will operate a second FSRU from
later in 2023 for five years, Wilhelmshaven 2.
    Uniper plans to add a land-based ammonia reception terminal
and cracker in the second half of this decade. Ammonia is at
times used as a carrier for hydrogen, whose low density
otherwise makes transportation over long distances complicated.
    TES also has plans to eventually convert its operations to
clean gases.
    
    LUBMIN
    The FSRU Neptune, chartered by Deutsche ReGas, began
receiving LNG at Lubmin in the Baltic Sea early this year. 
    The gas is first 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 join a second FSRU there,
the Transgas Power.
    Regas plans a major hydrogen electrolysis plant at both
Lubmin and Mukran.


    BRUNSBUETTEL
    The EU Commission approved a 40 million euro support measure
for the land-based liquefied natural gas (LNG) terminal at
Brunsbuettel on the North Sea, citing its contribution to the
security and diversification of supply.
    The Brunsbuettel FSRU, operated by RWE's  RWEG.DE  trading
arm, 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 of 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 2023/24 winter.
Designated vessel Transgas Force is 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.

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