Saturday, January 28, 2023
spot_img
HomeGasGermany Charters FSRUs to Boost LNG Imports to Replace Russian Gas

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Germany Charters FSRUs to Boost LNG Imports to Replace Russian Gas

Germany took steps to ramp up liquefied natural gas (LNG) imports on Thursday as it moves away from piped Russian supply, renting four floating storage and regasification units (FSRUs) and choosing the North Sea port of Wilhelmshaven as the first handling hub.

Demand for FSRUs has risen sharply as governments across Europe scramble to find quick ways to secure more LNG. They are a key part of Germany’s strategy as it will take time to build more permanent LNG terminals.

Europe’s biggest economy currently relies on piped Russian gas for almost a third of its supply, imports which totalled 142 billion cubic metres (bcm) in 2021. Berlin has said it could take until summer 2024 to end its reliance on Russian gas.

Germany committed to chartering two FSRUs on Thursday through utility Uniper and to two 10-year deals with Norwegian vessel operator Hoegh LNG to be completed by September or October, which will be operated by Uniper rival RWE.

The northern deep-sea port of Wilhelmshaven will be the first location to receive seaborne LNG in the winter of 2022/23, to be shortly followed by Brunsbuettel in Schleswig-Holstein.

The Economy Ministry last weekend said it wanted four FSRUs to speed the diversification of the country’s energy in the wake of Russia’s invasion of Ukraine.

Economy Minister Robert Habeck told reporters in Wilhelmshaven the terminals were part of the plan “to become independent of blackmail by Russia. A day like this makes me confident that it can work,” he said.

The government has earmarked 2.94 billion euros for the FSRUs and plans to pass legislation shortly to give permits for the infrastructure.

“I believe the date, end 2022, early 2023 is technically realistic for the commissioning of the LNG landing point,” said Hanns Koenig, an analyst with Aurora Energy Research. “But you have to get the gas.”

Habeck has recently visited gas producing countries including Norway and Qatar, looking for alternatives to Russia.

The first of Germany’s FSRUs will anchor in Wilhelmshaven, with a capacity of 7.5 billion cubic metres per year, equivalent to 8.5% of total German gas demand.

The other three will each have at least 5 bcm capacity, a joint statement by the Berlin economy ministry and Lower Saxony’s environment ministry said.

The two Uniper ships will be chartered from vessel supplier Dynagas.

The gas arriving in Wilhelmshaven will be fed into Germany’s pipeline grid via links to be provided by Niedersachsen Ports GmbH & Co. KG (NPorts) and in close cooperation with Uniper which is investing 65 million euros ($68.82 million) in the project.

A connection line from the port to existing long-distance gas transport pipelines and underground storage caverns is being built by regulated pipeline company OGE.

In the longer term the aim is to be able to switch to renewable gas and clean hydrogen at the site, in line with Germany’s climate protection commitments.

“Using LNG contradicts the government’s target of climate neutrality,” said the managing director of the German arm of Friends of the Earth (BUND), Antje von Broock.

[reuters]

Related Posts

Video

Finance & Economy
Shipping News
Ports

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Maritime UK: Net Zero Review published

On 13 January, the Department for Business, Energy and Industrial Strategy (BEIS) published the...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...