👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Factbox-Germany builds up LNG import terminals

Published 04/04/2024, 10:06
Updated 04/04/2024, 10:11
© 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
NG
-
SHEL
-
TTEF
-
0HA0
-

(Reuters) - Private company Deutsche ReGas on April 3 ended a gas shuttle service from storage vessel Seapeak Hispania to the Baltic Sea port of Lubmin.

The halt was in preparation for moving the floating storage regasification unit (FSRU) Neptune, moored in Lubmin, to its new Mukran port terminal on nearby Ruegen island.

The Neptune had received its liquefied natural gas (LNG) cargoes first via the Seapak Hispania, another storage vessel, in a shuttle set-up accounting for shallow water.

The company said this is the first step towards moving its LNG operations from Lubmin, where they began early in 2023, entirely to Mukran, and focusing on clean hydrogen activities at Lubmin in future.

The projects are part of Germany's push to widen its gas import options to replace Russian supply.

Last month, a final investment decision was taken to build an LNG terminal by 2027 at the Elbe River inland port of Stade.

Germany has three floating storage regasification units(FSRUs) working at the ports of Wilhelmshaven, Brunsbuettel and Lubmin.

In addition, the Energos Power, arrived on Feb. 24 at Mukran for testing, inland river port Stade received an FSRU last month, and Wilhelmshaven will also receive a second one.

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

Here are details about Germany's LNG sites:

MUKRAN

The Energos Power will be joined by the Neptune in the early summer so that both can deliver gas to the mainland, ReGas said.

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

ReGas holds long-term supply deals with France's TotalEnergies (LON:TTEF) and trading group MET.

The Mukran project has triggered local opposition. 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.

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 and now due to go to Mukran, began receiving LNG at Lubmin in early 2023.

Before being shuttled to Lubmin, the gas was first delivered to the Seapeak Hispania, which is now earmarked to leave the region.

ReGas plans hydrogen electrolysis plants at both Lubmin and Mukran.

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

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.

© 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

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

($1 = 0.9214 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.