December 21, 2018 [Kallanish Energy] - Germany’s energy company, Uniper, and Japan’s Mitsui O.S.K. Lines (MOL), announced they will intensify their efforts to implement a floating storage and regasification unit (FSRU) – potentially Germany’s first liquefied natural gas (LNG) terminal.
The companies said in a joint statement earlier this week an agreement has been reached, with Uniper to develop the project and MOL to own, operate and finance it. The FSRU is planned to have a send-out capacity of 10 billion cubic meters per year (Bcm/y) and a LNG storage capacity of 263,000 cubic meters.
The facility is to be built at a Uniper site in Wilhelmshaven, which is the only German deep-water port, and benefits from nearby existing pipeline and storage infrastructure. Commercial operations are slated for the second half of 2022, Kallanish Energy reports.
As the project developer, Uniper will be in charge of obtaining the necessary permits with relevant authorities, as well as gathering interest for regasification capacity from additional market participants.
“Our partnership with MOL combined with the FSRU technology, as well as Wilhelmshaven’s uniqueness in Germany, provide the fastest and most economical way to realise LNG imports directly into Germany. This will also be to the benefit of the end customers,” said Uniper CEO Keith Martin.
“We continue to support Uniper through our existing strong relationship and cooperation to secure Germany’s first LNG terminal in Wilhemshaven,” added MOL’s senior managing executive officer, Takeshi Hashimoto.
Additionally, the companies also signed a LNG transportation contract, under which MOL will provide Uniper with shipping capacity equivalent to an 180,000-cubic-meter LNG carrier. The supply will start in December 2020, and will enable Uniper to optimize its LNG volumes sourced from the U.S.’s Freeport LNG export facility, and to further leverage its expanding LNG trading activities.
Uniper has a 20-year supply contract covering some 0.9 million tonnes per annum (Mtpa) of U.S. LNG. The company claims a LNG terminal in Germany would “decisively strengthen the security of gas supply” in the country and increase competition to the benefit of end customers.
Compared to an onshore LNG terminal, FSRU are cheaper and faster to be built.
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