Page 9 - GLNG Week 25

GLNG COMMENTARY GLNG

Germany’s first LNG project

moves closer to realisation

A project that could become Germany’s first LNG import terminal is

slowly moving towards an FID

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

Week 25 26•June•2020 www. NEWSBASE .com P9