Page 5 - FSUOGM Week 19 2022

FSUOGM COMMENTARY FSUOGM

floating storage and regasification units (FSRUs) LNG project is still officially planned, but there
for the project, which is due online in two stages have been no updates to this scheme in years.
in 2022-23 and 2025. A second, 2.2 bcm per year Latvia is looking to join its Baltic neighbours
FSRU has been proposed in Wilhelmshaven in the LNG import market with the 1.5 bcm per
by Tree Energy Solution, with a launch target year Skulte LNG terminal, due online in 2023.
of 2025. Finally, Gasunie wants to launch an 8 Local media reported in March that US and
bcm per year facility in 2026 in Brunsbuettel, Middle East investors were interested in the
all sooner if progress is fast. The project secured project.
backing from Germany energy group RWE in Last on the list is Albania, which has pro-
early March, and is set to get funding from Ger- posed building a LNG terminal in Vlora, with
man development bank KfW. support from US partners ExxonMobil and
Excelerate Energy. The partners agreed to study
Other new markets the plan last year, as well as evaluate the prospect
Several LNG projects have been proposed in of recommissioning and potentially expanding
Ireland in the past, but none have made any real the 100-MW Vlora power plant, which was built
progress because of successive governments’ in 2009 to run on gas as well as coal but has been
antipathy towards importing fracked US gas. left idle because of a design fault.
Currently on the table are the 7.8 bcm per year As it stands, Albania lacks a national gas grid,
Shannon LNG and 2.6 bcm per year Mag Mell but the project’s supporters say the country could
import projects. serve as a gateway from LNG supply into the
Natural gas accounts for over a third of Ire- Balkans. The region is home to several countries
land’s primary energy mix, and three-quarters that are virtually entirely dependent on Russia
of supply comes from a single pipeline from the for their gas supply, including Bosnia, Serbia and
UK. The rest comes from the Corrib field off Ire- North Macedonia.
land’s west coast, but its production is in decline,
prompting energy security concerns. Expanding existing markets
Whether or not Ireland’s coalition govern- Many countries in Europe that already bring
ment comprising the right-leaning Fianna Fail LNG ashore are looking to expand their existing
and Fine Gael parties and the Green party will terminals and add new ones. First and foremost
change course and back these projects is uncer- there is Italy, which wants to add two 5 bcm
tain, even under current market conditions. per year FSRUs in 2023, build a 8 bcm per year
However, the government has said it “is consid- onshore plant on Sicily, and expand its Adriatic
ering the risks to both natural gas and electricity LNG terminal by 0.5 bcm per year by 2024.
supplies, and a range of measures including the Italy is one of the largest gas markets in
need for additional capacity to import energy Europe, and while its supply is relatively well
(such as LNG).” diversified already, with access to Azeri and
Another new LNG market is set to be Esto- North African pipeline supply in addition to
nia, where Axela has proposed the 2.5 bcm per Russian gas and LNG, the market’s sheer size
year Paldiski LNG terminal, and Liwathon the 4 means there is ample work to do to wean the
bcm per year Tallinn LNG terminal. Alexela has country off Gazprom’s shipments.
said it will start work on the construction of a Belgium plans to add 3.9 bcm per year of
quay to house the terminal later this month, and regasification capacity at its Zeebrugge termi-
negotiations are underway with Elering on the nal by 2024, and a further 1.8 bcm annually two
development of a pipeline to link the facility up years later. The Netherlands similarly wants to
with the national grid. expand its Gate terminal by 1.5 bcm and 2.5 bcm
Elering is also working with Gasgrid Finland per year in 2024 and 2026 respectively. France,
on jointly leasing a FSRU, which will be placed meanwhile, wants to add 3.5 bcm per year of
off Finland’s south coast, or initially in Estonia if capacity between 2022 and 2030 at the Fos
the necessary Finnish infrastructure is not ready Cavaou LNG terminal, and position an FSRU at
in time for launch next winter. Le Havre.
LNG co-operation makes sense for Esto- In its ambition to become the main hub for
nia and Finland, which are both bracing for a gas supply in Southeast Europe, Greece has
potential disruption in Russian gas supply after plans for four more FSRUs to add to its existing
refusing to pay for imports in rubles, and want onshore Revithoussa facility. These include the
to phase out Russian gas themselves as soon as 5.5 bcm per year Alexandroupolis LNG project
possible. The two countries are connected by the led by Gastrade, where an FID was taken earlier
2.6 bcm per year Balticconnector pipeline, which this year. Imports are scheduled to start there in
was commissioned at the start of 2020. The pair 2023.
will gain access to another source of non-Russian Then there is Thrace LNG (5.5 bcm per year),
gas supply in addition to the Klaipeda LNG ter- Argo FSRU (5.2 bcm per year) and Dioriga Gas
minal in Lithuania. FSRU (2.5 bcm per year), which are all at the
The long-delayed 4 bcm per year Tallinn pre-FID stage. Greece will be able to spread this

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