HomeNewsGermany building up LNG import terminals

Germany building up LNG import terminals

9/17/2024

Germany is trying to expand its natural gas import options to replace Russian supply and as part of its decarbonization efforts.

Below are details on terminals being developed to host floating storage regasification units (FSRUs) to receive liquefied natural gas (LNG). Plans also include shore-based regasification terminals and facilities to import and produce ammonia and hydrogen (H2).

Mukran. Private company Deutsche ReGas started reloading services from the LNG tanker Coral Energy on Sept. 17, using smaller tankers to deliver LNG to locations without pipeline access. This followed the Sept. 2 opening of regular operations at the site with FSRUs Energos Power and Neptune.

Mukran, on Ruegen island in the Baltic Sea, will supply onshore grids via pipeline firm Gascade's new OAL pipeline with LNG.

Gascade completed the 50-km (30-mi) infrastructure in February and feed-in is possible, with existing onshore pipelines NEL and EUGAL offering long-distance transport. ReGas holds long-term supply deals with France's TotalEnergies and trading group MET.

The Mukran project has triggered local opposition, but legal challenges to commercial operations by environmental groups DUH and Nabu have been thrown out by German courts.

Lubmin. ReGas and Hoegh, which runs a fleet of LNG tankers, on June 28 signed an agreement to develop a H2 import terminal at the Baltic Sea port, a forerunner of operations at Mukran.

From 2026, the two plan to operate a conversion process from cracking imported green ammonia to producing green H2 to be fed into Germany's H2 core network. ReGas has ended shuttling imported LNG to Lubmin, which it began early in 2023, in favor of Mukran. ReGas also plans H2 electrolysis plants at both Lubmin and Mukran.

Gascade has created a grid connection to the Eugal 1 and 2 onshore gas pipelines for a green H2 production project at Lubmin, pursued by startup developer HH2E, which is raising funds and ordering equipment ahead of final investment decisions. Gascade will be able to transport both gas and H2 blends.

Stade. On June 28, developers at the Elbe river port of Stade formally inaugurated a land-based "ammonia ready" terminal for start in 2027, for which a final investment decision had been taken by Hanseatic Energy Hub (HEH) in March.

The FSRU Energos Force arrived on March 15, expected to operate until 2027, ahead of the onshore terminal starting operations.

The onshore terminal, to be built by Spain's Tecnicas Reunidas, is expected to cost around €1 B ($1.11 B). Gas to arrive there has been allocated to state-controlled SEFE, utility EnBW and Czech utility CEZ.

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

Wilhelmshaven. Utility Uniper launched Germany's first FSRU operation, Wilhelmshaven 1, in 2022. Uniper also plans to add a land-based ammonia reception terminal and cracker in the second half of this decade.

Another operator, Tree Energy Solutions (TES), plans to operate a second FSRU, Wilhelmshaven 2, between 2024 and 2027, and plans to eventually convert its operations to clean gases.

Brunsbuettel. The Brunsbuettel FSRU went into operation in April 2023, initially chartered and operated by utility RWE's trading arm before it was handed over to state-owned Deutsche Energy Terminal (DET) at the start of 2024.

It is the forerunner of a land-based LNG facility which has been cleared to receive €40 MM of state support. It 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 has committed to sizeable purchases.

($1 = €0.8995)

 

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