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Uniper invites bids for German

LNG import capacity

PROJECTS & GERMANY’S Uniper has invited binding offers
COMPANIES for capacity at the 9.8bn cubic metre LNG regas-
ification terminal it plans to build in the port of
Wilhelmshaven.
The project is expected to enter its next phase
on September 14, during which capacity will be
awarded. Uniper launched the first, non-bind-
ing phase of the auction back in May last year.
During this phase, it “already found great interest
among market players,” the company said.
The Wilhelmshaven terminal is one of several
LNG import projects underway in Germany,
which despite being Europe’s biggest gas market in Stade. The group announced on September
does not have any regasification capacity. Uniper 1 that the proposed import facility had gener-
said the terminal would help diversify German ated “significant market interest.” Hanseatic has
gas supply, the bulk of which comes from Russia. signed letters of intent (LoIs) with nine market
The facility will consist of a floating storage players, and intends to launch an open season for
and regasification unit (FSRU) and a pipeline capacity by the end of the year.
connection to the national grid some 30 km The terminal, which it has been suggested
away. Uniper is hopeful that the project will start could import between 5 and 8 bcm per year of
operations within five years, but a final invest- gas, will be sited at the Dow industrial park. In
ment decision (FID) has not been taken yet. addition to supplying gas into the German grid,
The German government is currently review- it will offer LNG for loading onto trucks and
ing an environmental impact assessment for the trains, providing access to customers without
plan. pipeline connections. The terminal, in close
Meanwhile, private group Hanseatic Energy proximity to the port of Hamburg, will also offer
Hub is hoping to advance another LNG project bunkering services.™

Russia’s Gazprom sees August

exports rebound, but US LNG looms

PERFORMANCE RUSSIA’S natural gas giant Gazprom saw its month, only averaged $89 per 1,000 cubic
gas exports reach 16bn cubic metres, the high- metres.
est monthly exports in 2020 so far, Interfax has BCS GM believes that the supply/demand
reported. balance in Europe has “definitely improved this
Gazprom reported that the second quarter of summer as LNG – particularly from the US –
2020 was its worst in over a decade, but the com- retreated from the market.”
pany’s management remained optimistic on the The analysts do not believe that Gazprom’s
short-term outlook and reiterated the dividend uptick in sales will be very far above the compa-
policy. ny’s accounting breakeven level of $100 per mcm
US LNG exports BCS Global Markets on September 3 wel- (in 2Q20 Gazprom’s average European export
threaten to capture comed the increase in exports, seeing the news price was about $110 per mcm).
market share from as slightly positive. “Gazprom finally booked a BCS GM also expects US liquefaction to
Gazprom. decent month of European exports in August, ramp back up to near full capacity by October,
but only at low-margin prices. We watch for the with much of the extra 5 bcm per month of gas
return of US LNG this [autumn],” BCS GM ana- likely ending up in European markets either
lysts wrote. directly or indirectly, “capping price increases
In the reporting month European spot and taking market share from Gazprom and
prices, although improving late in the other suppliers of pipeline gas”.™

Week 35 04•September•2020 www. NEWSBASE .com P15