Wednesday, November 30, 2022
spot_img
HomeGasGermany Charters FSRUs to Boost LNG Imports to Replace Russian Gas

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

Golden Ocean launches $100m stock buyback

The Board of Directors of Golden Ocean has on October 4, 2022, authorized a share buy-back program of maximum USD 100 million to purchase...

Diana Shipping Signs Term Loan Facility With Nordea Bank

Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, announced that...

Rival of Matson can proceed with antitrust lawsuit

Two Matson Inc subsidiaries must face claims from rival container shipping company American President Lines LLC that Matson is abusing its market power over...

Major Shareholders Raise Offer for Seaspan Takeover

A consortium led by former Berkshire Hathaway Inc. executive David Sokol and Canadian investment group Fairfax Financial Holdings Ltd raised its offer to buy...

2020 Bulkers: Conversion of index-linked charter hire for Bulk Sao Paulo

2020 Bulkers has converted the index-linked charter for Bulk Sao Paulo into fixed rate charter at US$16,146 per day, gross, for the period from...

Cyprus: Green light for one-stop-shop in shipping sector

The Parliament of Cyprus this week unanimously approved the creation of a one-stop-shop framework...

Cyprus: Green light for one-stop-shop in shipping sector

The Parliament of Cyprus this week unanimously approved the creation of a one-stop-shop framework...

Norway limits access for Russian fishing trawlers in security push

Norway said on Thursday it would impose limits on Russian fishing vessels using its...

Stolt-Nielsen: Net profit continues to improve in third quarter

Stolt-Nielsen Limited yesterday reported unaudited results for the third quarter and first nine months...

Capesize drop snaps Baltic Index’s 4-session winning run

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

Los Angeles: Unprecedented Year Increases Port Emissions

Emissions from port-related sources increased in 2021 compared to the previous year, according to the Port of Los Angeles’ latest Inventory of Air Emissions....

Los Angeles: Unprecedented Year Increases Port Emissions

Emissions from port-related sources increased in 2021 compared to the previous year, according to the Port of Los Angeles’ latest Inventory of Air Emissions....

Greece names preferred investor for Igoumenitsa port

Greece's privatisations agency on Thursday named an Italian-led consortium as preferred bidder in the sale of a majority stake in the port of Igoumenitsa....

Piraeus Port posts all-time record in revenue & profitability

Piraeus Port Authority (PPA) S.A. reported 29.3% turnover increase for the first half of 2022, amounting to 93.1 million euros compared to 72.0 million...

Hapag-Lloyd AG acquires terminal business of SM SAAM S.A.

Hapag-Lloyd AG and SM SAAM S.A. signed a binding agreement under which Hapag-Lloyd will acquire 100 % of the shares of SAAM Ports S.A....