Page 4 - EurOil Week 25

EurOil COMMENTARY EurOil

Germany’s first LNG project

moves closer to realisation

What could become Germany’s first LNG import terminal is slowly moving towards an FID

GERMANY GERMAN energy utility RWE has said it aims capacity, relying instead on piped imports from
to finalise LNG supply contracts by the end of Russia, Norway and other sources, as well as
WHAT: this year that will underpin the development of domestic supply. Despite embracing renewable
Germany’s RWE aims what could be the country’s first regasification energies, though, Germany will need increasing
to finalise contracts terminal. amounts of gas over the next decade, to replace
to import LNG from a Behind the planned facility at Brunsbuettel baseload coal and nuclear-fired capacity that it
planned regasification in northern Germany is German LNG Terminal is phasing out.
terminal in Brunsbuettel (GLT), a joint venture between the Netherlands’ Domestic supply is in decline, meaning Ger-
by year-end. gas grid operator Gasunie, Dutch chemical stor- many will have to expand imports to meet future
age firm Vopak and German logistics company demand. But at the same time, it wants to avoid
WHY: Oiltanking. In a joint statement on June 18, RWE over-relying on its top supplier Russia, which
German gas needs are and GLT said they were in the “final phase” of delivered around 70% of its gas last year.
set to rise as nuclear and negotiating fully binding legal contracts for LNG Several other LNG projects are also under-
coal-fired capacity is imports and expected the process to be finished way in the country. Germany’s Uniper, Japan’s
taken offline. by the end of 2020. Doing so will put GLT “in a Mitsui OSK Lines and the Netherlands’ Titan
position to reach a positive investment decision.” LNG plan to position a floating storage and
WHAT NEXT: RWE reached a provisional deal in Septem- regasification unit (FSRU) off Wilhelms-
The number of new LNG ber 2018 to secure a “substantial” part of the haven. ExxonMobil has signed a preliminary
projects that are realised Brunsbuettel plant’s 8bn cubic metre per year deal on reserving some of its 10 bcm per year
may depend on whether regasification capacity. According to Reuters, capacity. The project’s partners signed a con-
the government supports the power producer booked 5 bcm. Other res- tract on building and chartering an FSRU in
the use of gas-derived ervations were made by Swiss utility Axpo and late May and aim to hold a tender this sum-
hydrogen. another unidentified company. The facility is due mer to secure binding offers from customers.
to start bringing gas ashore in early 2023. If this is a successful, the next step will be tak-
ing an FID.
Demand growth Meanwhile, Australian investment bank
Unlike other major gas markets in Europe, Macquarie and ChinaHarbour Engineering are
Germany has not developed any LNG import aiming to build a 5-8 bcm per year plant in Stade,

P4 www. NEWSBASE .com Week 25 25•June•2020