Source: Energy & Management Powernews, 08 March 2022
The KfW Bank and the energy companies Gasunie and RWE have issued a memorandum of understanding for the construction of an LNG terminal in Brunsbüttel.
On March 4, the three partners signed a so-called memorandum of understanding for the joint construction of "a terminal for the import of liquefied natural gas (LNG) at the Brunsbüttel site," the German Federal Ministry of Economics (BMWK) announced. On behalf of the German government, the Kreditanstalt für Wiederaufbau (KfW) signed the letter of intent. The 100% Dutch state-owned gas company Gasunie and the Essen-based RWE Group are the partners of the terminal project.
"KfW will take a 50% share in the LNG terminal via a financial contribution on behalf of the German government," it added. Until now, the companies Gasunie, Oiltanking (Hamburg) and Vopak (Rotterdam) were each equally involved in the planning company for the construction of the facility for liquefied natural gas. The latter two companies have now relinquished their shares to KfW. Operator of the LNG terminal in Brunsbüttel is to become Gasunie.
With an "annual regasification capacity of 8 billion cubic meters, the plant creates a direct opportunity to obtain natural gas for the German market from regions that cannot be reached by gas pipelines"; the BMWK continues. Germany currently obtains 55% of its natural gas demand, amounting to 95 billion cubic meters per year, from Russia.
Construction will take about three years
The German government hopes to reduce its dependence on Russia via another LNG terminal in Wilhelmshaven of a similar size to the one in Brunsbüttel. With both LNG land terminals "up to 20 percent of the annual gas consumption in Germany could be covered," the ministry said.
The construction of an LNG terminal like the one in Brunsbüttel will take about three years. The LNG terminal is to be equipped so that it can also be converted to regasify hydrogen and ammonia.
Federal Economics Minister Robert Habeck (Greens) said it was necessary to reduce dependence on Russian imports as quickly as possible. "At the latest, Russia's war of aggression against Ukraine makes this imperative. With an LNG terminal in Brunsbüttel, we are expanding import opportunities." LNG terminals are "an additional bypass."
Dutch Finance Minister Sigrid Kaag said, "With the construction of an LNG terminal in Brunsbüttel, the Dutch state-owned company Gasunie is making an important contribution to gas supply security in Europe. A good step towards reducing dependence on gas imports from Russia."
Author: Stefan Sagmeister