The German government announced on Thursday a fifth project for a floating liquefied natural gas (LNG) import terminal, with the participation of France’s Engie, as the country strives to replace Russian gas.
This new terminal will have “a capacity of at least five billion m³ per year and should enter service in the fourth quarter of 2023,” the Ministry of Economy reported in a press release.
It will be carried out by a conglomerate of companies in the sector, formed by the French Engie, the Belgian TES and the German Eon.
This government-leased FSRU (Floating Regasification Unit) vessel will be installed in the North Sea port of Wilhemshaven, where a similar facility is already scheduled to come online this winter.
Fifth installation project
“We are reducing dependence on Russian gas by rapidly building new infrastructure,” Economy Minister Robert Habeck told a news conference.
This is the fifth FSRU ship installation project announced by the government since the start of the war in Ukraine in late February. In addition, there are two other projects led by private companies.
The first two are due to start operating in December and help mitigate the risk of an energy crisis in Germany this winter.
These efforts “will allow, if all goes well (…) to pass the winter without too much inconvenience, but make no mistake, it is not a sign of relaxation, there is always a lot of tension and the need to save amounts of gas”, Mr. Habeck warned on Friday.
Europe’s leading economy was 55% dependent on Russia for its gas imports before the war in Ukraine.
Regasification terminals are used to import seaborne natural gas in liquid form.
Envelope of 3,000 million euros
Unlike other European countries, Germany did not previously have any such equipment, neither at sea nor on land.
These new terminals should allow Berlin to diversify its suppliers, increasing its orders from the United States, Qatar or even Canada, major LNG producers.
Berlin has released an envelope of almost three billion euros for the rental of floating FSRU units.
LNG tankers should be moored in particular in Brunsbüttel and Stade, not far from Hamburg, as well as in the city of Lubmin, on the edge of the Baltic.
Together, the public and private projects will cover “around a third” of Germany’s total gas demand, according to the ministry.
Source: BFM TV
