Factbox: Germany builds up LNG import terminals

KN Energies AB

10/01/2024 16:26

(Leads with KN becoming commercial manager of four North Sea
terminals, adds Lubmin pipeline link in paragraph 22)
       Jan 10 (Reuters) - Lithuanian energy terminal operator
Klaipedos Nafta (KN)  KNF1L.VL  this week said it has won a
tender to commercially manage four German liquefied natural gas
(LNG) terminals on the German North Sea coast.
        Germany's quest to increase LNG capacity for
regasification on its shores has intensified as it seeks to end
reliance on Russian pipeline gas, on which Europe depended
heavily prior to Moscow's invasion of Ukraine.
    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. 
        
    MUKRAN
    Private company Deutsche ReGas reported in August that
suppliers had booked 4 billion cubic metres (bcm) per annum of
capacity for 10 years at Mukran, where the company wants to pull
together two FSRUs for deliveries to the mainland.
    It has chartered a second FSRU, the Transgas Power, with
regasification capacity of 7.5 bcm, to complement the Neptune
currently active at Lubmin.
    LNG from Mukran is targeted to flow to onshore grids via gas
grid company Gascade's new pipeline from the first quarter of
2024, which obtained approval for completion from mining
authorities in November.
    The project has triggered local opposition. Two legal
challenges by environmental groups DUH and Nabu were thrown out
by the federal administrative court in September.
    
    WILHELMSHAVEN
    Utility Uniper  UN01.DE  launched Germany's first FSRU
operations, Wilhelmshaven 1, in December 2022 at the deep-water
port on the North Sea.  LNG/TKUK 
    Tree Energy Solutions (TES) plans to operate a second FSRU,
Wilhelmshaven 2, in the years between 2024 up to 2027.
    Further ahead, 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 on the Baltic Sea early in 2023. 
    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 on Ruegen
island, allowing the Seapeak Hispania to depart, and join the
second FSRU there, the Transgas Power.
    Regas plans hydrogen electrolysis plants at both Lubmin and
Mukran.
    Gascade has created a grid connection to the Eugal 1 and 2
pipelines for a green hydrogen production project pursued for
2025 by developer HH2E at Lubmin. The grid piece will offer
transports of gas and hydrogen blends.

    BRUNSBUETTEL
    The Brunsbuettel FSRU went into operation in April,
initially chartered and operated by utility RWE's  RWEG.DE 
trading arm before the handover 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 ($43.84 million) of
state support, that could start operations at the end of 2026,
when an adjacent ammonia terminal could also start up.
    State bank KfW, Gasunie and RWE are stakeholders and Shell
 SHEL.L  has committed to sizeable purchases.
    The total costs of the land-based terminal are 1.3 billion
euros.
    
    STADE
    The inland port on the river Elbe a year ago started work on
constructing a landing pier for an FSRU, to be ready in winter
2023/24.
    Designated vessel Transgas Force, moored at Bremerhaven port
to be fixed up for the purpose, is expected to arrive in
February.
    Project firm Hanseatic Energy Hub (HEH) also plans a
land-based terminal where it has allocated regasification
capacity to become operational in 2027.
    The allocations include volumes for state-controlled SEFE,
utility EnBW  EBKG.DE  and Czech utility CEZ  CEZP.PR .
    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 investment firm Partners Group  PGHN.S ,
logistics group Buss, chemicals company Dow  DOW.N  and Spanish
grid operator Enagas.    

($1 = 0.9124 euros)

 (Reporting by Vera Eckert; Editing by David Evans)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))