Page 13 - GLNG Week 10 2023

GLNG EUROPE GLNG

Poland’s gas grid operator probes market

demand for expansion of planned LNG

terminal in Gdansk

POLAND POLISH gas grid operator Gaz-System launched planned terminal will depend on the reported
a non-binding market research procedure to market interest in the procedure, Gaz-System
The Gdansk terminal gauge the demand for additional capacity for its said.
would be Poland’s floating LNG terminal in the Gulf of Gdansk, As part of the market research procedure,
second. Gaz-System said on March 6. Gaz-System will evaluate the level of market
The terminal is planned to have a regasifica- interest in exporting regasified LNG to Slova-
tion capacity of 6.1bn cubic metres of gas annu- kia, Lithuania, Denmark, Germany, the Czech
ally but Gaz-System assumes that an expansion Republic, and Ukraine.
would be possible based on market demand. The terminal in the Gulf of Gdansk is
The demand is expected to grow in the wake expected to become operational by 2028.
of Poland and the rest of Europe reorienting gas Poland used to get the bulk of its gas from
supply routes after Russia ceased to be the main Russia. The country has now switched sup-
supplier following its attack on Ukraine a year plies via Qatar, the US, and Norway, with some
ago. domestic production filling in to meet the overall
The final regasification capacity for the demand estimated at around 15 bcm in 2023. ™

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-
The government has expectations, the government said on March 3, bined 27bn cubic metres of gas in 2024 and
warned taxpayers that warning taxpayers that stronger energy security 2025, while a sixth ordered privately will offer
stronger energy security would come at a cost. 5 bcm in 2024 and potentially 10 bcm in 2025.
will come at a cost. 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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