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Factbox-Germany builds up LNG import terminals

Published 21/03/2024, 13:17
Updated 21/03/2024, 13:21
© Reuters. Model of LNG tanker is seen in front of Germany's flag in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - A final investment decision has been taken to build an onshore liquefied natural gas (LNG) terminal by 2027 at the German port of Stade on the Elbe River.

The project is part of Germany's push to widen its gas import options and wean itself off of Russian supply.

Germany has three floating storage regasification units(FSRUs) working at the ports of Wilhelmshaven, Brunsbuettel and Lubmin and a fourth arrived on Feb. 24 at Mukran for testing.

State-owned Deutsche Energy Terminal (DET) in January commissioned Lithuania's Klaipedos Nafta (KN) to manage four LNG terminals on the North Sea: Wilhelmshaven 1 and 2, Brunsbuettel and Stade.

Here are details about Germany's LNG sites:

MUKRAN

The FSRU Energos Power moored at Mukran on Ruegen Island in February to test the regasification equipment and commission operations, private company Deutsche ReGas reported.

Mukran is expected to supply onshore grids via grid firm Gascade's new OAL pipeline in the first quarter. Gascade said on Feb. 26 the 50-km (30-mile) OAL was complete and feed-in was possible.

The Energos Power will be joined by the FSRU Neptune from Lubmin for deliveries to the mainland.

Once the Neptune has moved to Ruegen, a complicated shuttle service to cope with shallow water near Lubmin can be abandoned.

The Mukran project has triggered local opposition. Two legal challenges by environmental groups DUH and Nabu were thrown out by the federal administrative court.

WILHELMSHAVEN

Utility Uniper launched Germany's first FSRU operations, Wilhelmshaven 1, in December 2022. [LNG/TKUK]

Tree Energy Solutions (TES) plans to operate a second FSRU, Wilhelmshaven 2, between 2024 and 2027.

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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 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 coast in early 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 (LON:TTEF) and trading group MET.

The Neptune is designated to move to Mukran to join the FSRU Energos Power.

ReGas plans hydrogen electrolysis plants at both Lubmin and Mukran.

Gascade has also created a grid connection to the Eugal 1 and 2 pipelines for a green hydrogen production project by developer HH2E at Lubmin. it will be able to transport gas and hydrogen blends.

BRUNSBUETTEL

The Brunsbuettel FSRU went into operation in April 2023, initially chartered and operated by utility RWE (LON:0HA0)'s 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, 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 (LON:RDSa) has committed to sizeable purchases.

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STADE

The FSRU Energos Force arrived on March 15 where it is expected to operate until 2027 when an onshore terminal is expected to start operations.

A final investment decision to build the terminal was announced on March 21 by project firm Hanseatic Energy Hub (HEH).

The terminal, to be built by Spain's Tecnicas Reunidas, is expected to cost around 1 billion euros ($1.09 billion).

Gas has been allocated to state-controlled SEFE, utility EnBW and Czech utility CEZ.

HEH said the terminal will be equipped to handle LNG, synthetic natural gas and liquefied biomethane.

HEH is backed by investment firm Partners Group, logistics group Buss, chemicals company Dow and Spanish grid operator Enagas.

($1 = 0.9168 euros)

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