Page 10 - EurOil Week 10 2023

EurOil PIPELINES & TRANSPORT EurOil

German LNG infrastructure costs

set to exceed budget

GERMANY THE cost of infrastructure for planned floating launch before the end of this year. Five char-
LNG terminals in Germany is set to surpass tered by the government will provide a com-
Germany is developing expectations, the government said on March 3, bined 27bn cubic metres of gas in 2024 and
LNG infrastructure at warning taxpayers that stronger energy security 2025, while a sixth ordered privately will offer
breakneck speed. would come at a cost. 5 bcm in 2024 and potentially 10 bcm in 2025.
The lower house of Germany’s parliament An additional two land-based hubs are
has cleared €9.8bn ($10.4bn) for LNG infra- planned, but final investment decisions (FIDs)
structure development during the 2022-38 are yet to be taken.
period. But “it is already clear now that more The government has faced continued crit-
cost increases will have to be added,” the econ- icism from some opposition lawmakers and
omy ministry warned in a paper. That paper green groups for its support for LNG. Critics
was supported by a study carried out by the argue that Germany should instead pursue
Cologne economic research institute, EWI. greater electrification, warning that the devel-
Germany was the biggest market for Rus- opment of new gas infrastructure will lock in
sian gas in Europe prior to Moscow’s invasion demand for the fuel for longer.
of Ukraine. But Gazprom cut off that supply last The government paper also stressed the
year, and with the Nord Stream 1 pipeline now need to solidify and expand the infrastruc-
out of action and the Yamal-Europe pipeline ture to strengthen Europe’s overall gas supply
no longer flowing gas westwards, there is little security.
prospect of that supply returning. “As much as other European countries made
Berlin has embraced LNG as the means LNG shipments to Germany possible, Ger-
of replacing this gas. Six floating storage and many must be able to support its neighbours as
regasification units (FSRUs) are scheduled for well,” it said. ™

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