Page 83 - bne IntelliNews Russia OUTLOOK 2025

Germany became a key conduit of LNG for its eastern neighbors after it set up multiple import facilities following the 2022 energy squeeze
Lobby group Zukunft Gas rushed to remind Austria that terminals such as Mukran on the Baltic Sea “can play an important role” for ensuring supplies in light of the events involving OMV.
However, “German facilities are more expensive to deliver to than the rest of Europe, making the country one of the least competitive options available,” said Qasim Afghan, a commercial analyst at Spark Commodities.
On average, regasification in Germany for a cargo to be delivered next month is 37% more expensive than at other northwest European terminals, he said. That’s mainly because of higher slot prices and costs associated with the power consumption needed to turn the liquid back into gas.
In addition, Germany hosts floating import terminals, which are more expensive to operate during winter. They currently have the most prompt slots available for purchase in Europe, Afghan said, highlighting their unattractiveness. The country also charges a contentious storage levy.
All of these costs add up for buyers of LNG. Slovakia would pay as much as €220mn ($232mn) more annually in transit fees to get deliveries of the liquefied fuel, according to the head of its largest energy supplier.
For now, with OMV cut off, other Central European companies are eagerly snapping up Russia’s pipeline flows, knowing that the
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