Germany builds up LNG import terminals

(Reuters) - Germany's Elbe river LNG port at Stade expects its first floating regasification vessel to arrive, shortly after the first arrival of LNG at the Baltic Sea terminal of Mukran.

Germany's quest to regasify LNG cargoes on German shores has intensified to end reliance on Russia, on which European energy industries depended heavily before Moscow's invasion of Ukraine.

Pending the provision of fixed terminals, Germany is using FSRUs to help to replace piped Russian gas supplies.

Launched before the additions in Mukran and Stade, three FSRUs are already working at the Wilhelmshaven, Brunsbuettel and Lubmin ports after Germany arranged their charter and onshore connections.

State-owned Deutsche Energy Terminal (DET) in January commissioned Lithuania's Klaipedos Nafta (KN) KNE1L.VL to commercially manage four LNG terminals on the North Sea, Wilhelmshaven 1 and 2, Brunsbuettel and Stade on its behalf.

MUKRAN

Private company Deutsche ReGas reported last month the FSRU Energos Power had moored at Mukran on Ruegen island to test the regasification equipment and commission operations.

LNG from Mukran is targeted to flow to onshore grids via gas grid company Gascade's new OAL pipeline in the remainder of first quarter 2024, having obtained approvals for completion from mining authorities in November and February.

Gascade said on Feb. 26 the 50-km (30-mile) OAL was complete and feed-in was possible.

The Energos Power will be complemented by a second ship, the Neptune, which is active at Lubmin, as ReGas pulls together two FSRUs 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 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, 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 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 coast 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 Neptune is designated to move to Mukran, allowing the Seapeak Hispania to depart, and join the second FSRU there, the 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 pursued for 2025 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'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 ($43.54 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 cost of the land-based terminal is 1.3 billion euros.

STADE

The inland port on the river Elbe early in 2023 started work on constructing a landing pier for the first FSRU, the Energos Force, which is due to arrive early in the day on March 15, DET announced on March 14.

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.

HEH 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 and Spanish grid operator Enagas.

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