Market responds positively to first German LNG import terminal
German LNG Terminal GmbH has successfully completed its “Open Season” for the planned LNG import terminal in Brunsbuettel in Northern Germany. This “Open Season”, which is a dedicated process to determine market interest and identify potential customers, resulted in a positive outcome: a considerable number of Memorandums of Understanding has been signed with companies that represent a comprehensive range and complementary interests, ranging from regasification to send out and LNG distribution services. Next steps include further discussions with potential customers with a view to sign Head of Agreements. In addition, the necessary engineering work for the permit approval process has already been started by engineering company Tractabel to be able to apply for the relevant permits by the end of 2018.
Katja Freitag, spokesperson of German LNG Terminal GmbH, comments:
“We are delighted with this outcome. The Open Season process has demonstrated that the market has received well the varied range of services to be available at the planned LNG import and smallscale terminal in Brunsbuettel. It confirms that our service portfolio is in line with customers’ needs. We are on schedule to make next steps and have started the necessary permit approval process. If all goes to plan, including obtaining the necessary permits by then, we are due to take a final investment decision at the end of 2019. Following this, we will start the construction work with the terminal possibly becoming operational by the end of 2022.”
The terminal will not only potentially supply energy to the local energy-intensive industries, one of the reasons for locating the terminal at Brunsbuettel, but it will also have the capacity to secure and diversify German gas supplies. The terminal will be able to supply approximately 10% of the German gas market.
Furthermore, the terminal will decisively support the development of an LNG bunkering infrastructure in Germany. This will contribute to the increased use of LNG as an alternative marine fuel and therefore contribute to the reduction of the shipping sector’s emissions. Equally, LNG will increase its relevance as a fuel for heavy goods vehicles. A possible rail connection will allow the delivery of LNG by dedicated LNG tank cars.
The German LNG Terminal GmbH is a joint venture of the Dutch companies Gasunie LNG Holding B.V. and Vopak LNG Holding B.V. as well as Oiltanking GmbH, a subsidiary of the Marquard & Bahls AG, based in Hamburg.
The aim of German LNG Terminal GmbH is to develop, build, own and operate a multifunctional LNG import terminal in northern Germany. The terminal will contribute to energy diversification in Germany and will support the introduction of LNG as a cleaner fuel alternative in maritime and road transport, lowering the environmental impact of both shipping and heavy goods vehicles transport.
The terminal will combine a variety services such as unloading and loading of LNG ships, storage of LNG, regasification and send out into the German natural gas network and LNG distribution by trucks.
Source and more information: German LNG Terminal