Germany Certain to Exceed 9.8 Billion Euro LNG Terminal Bill - EconMin
03.06.2023 By - NEWS

March 6, 2023 [Reuters] – Germany said on Friday that new infrastructure for floating liquefied natural gas terminals (LNG) will exceed previously expected costs, forewarning taxpayers that there will be a price to pay for energy security.


The Bundestag lower house of parliament has approved 9.8 billion euros ($10.40 billion) for the 2022-2038 period, but “It is already clear now, that more cost increases will have to be added,” according to a paper issued by the Economy Ministry.

The paper had been drawn up partly with the help of a study undertaken by the Cologne economic research institute, EWI.

Germany, one of the most reliant in Europe on Russian gas, is looking for alternatives since Moscow turned off the taps in the energy crisis in the wake of war in Ukraine.

However, critics of the LNG push say the future of energy should lie in electrification and such terminals could help fossil-fuel incumbents cement their survival. Environmentalists fear the units could pose risks to local wildlife and tourism.

Berlin initiated the build-up of floating storage and regasification units (FSRUs) at various coastal locations in record time to speed Germany’s bid to get access to new import channels, on top of raising pipeline and LNG gas receipts from neighbouring Europe for the 2022/23 and 2023/24 winters.

The government paper said that in a follow-up to the immediate measures, it was important to solidify and expand the infrastructure to be able to boost Europe’s gas infrastructure overall, to create buffers, flexibility and solidarity.

“As much as other European countries made LNG shipments to Germany possible, Germany must be able to support its neighbours as well,” it said.

Six FSRUs at four sites are due to be online by the end of 2023.

In 2024 and 2025, five government-chartered FSRUs will offer regasification capacities of 27 billion cubic metres (bcm). A private project at the Lubmin port will offer 5 bcm, but can be doubled to 10 bcm from 2024.

Project companies, utility RWE (RWEG.DE) and HEH, plan land-based LNG hubs at Brunsbuettel and Stade, that could be handling non-fossil fuels such as clean hydrogen or ammonia in the long-term future.

Uniper (UN01.DE) is part of a plan to build a purely green gases hub at Wilhelmshaven.

Final investment decisions on these three projects have not been taken.

Pro Trial: Access 11,340 Tank Terminal and Production Facilities

11,340 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Woodfield Systems to Invest $100 Mn for Manufacturing in India
03.01.2024 - NEWS
March 1, 2024 [Business Line]- The company currently has two plants in Maharashtra and has a thir... Read More
ExxonMobil, Shell to Work with Singapore on Carbon Capture and Storage Project
03.01.2024 - NEWS
March 1, 2024 [Investing]- Global energy majors Exxon Mobil and Shell will work with Singapore to... Read More
Chevron Announces its First Solar-to-Hydrogen Production Project in California’s Central Valley
03.01.2024 - NEWS
March 1, 2024 [Chevron]- Chevron New Energies, a division of Chevron U.S.A. Inc., announced it is... Read More
Sempra Targets Cameron LNG Expansion FID in H1 2025
02.29.2024 - NEWS
February 29, 2024 [LNG Prime]- US LNG exporter Sempra Infrastructure, a unit of Sempra, expects t... Read More