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Germany to build first LNG terminal

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Amid rising geopolitical tensions with Russia, Angela Merkel’s government is seeking to build Germany’s first liquefied natural gas (LNG) terminal as means of reducing dependence on Russian gas supplies.

Merkel’s recently formed coalition is acutely aware that gas reservoirs across Western Europe are depleting, placing Germany’s energy security at risk. The coalition has a ‘coalition contract’ which, among other policies, contains a commitment to developing the country’s LNG industry “basically from scratch” over the next four years.

To get an idea of how serious Germany’s supply issue is, consider this data from Marex Spectron Group Ltd- Russian gas made up more than 60 percent of Germany’s total gas imports in 2017. With Russia increasingly drawing the ire of western powers following a nerve-agent attack on British soil, Merkel will be keen to reduce this percentage as soon as possible.
German Chancellor Angela Merkel meets with Russian President, Vladimir Putin.
(German Chancellor Angela Merkel meets with Russian President, Vladimir Putin. Image via

Why LNG?

LNG offers a flexible and economic source of energy, particularly when compared to fuel oil and diesel. LNG is also of superior quality to pipeline gas, because it is purer, has higher methane and energy content, and has a more stable composition.

Across Europe, LNG is being viewed as an increasingly attractive energy source. According to a recent report by Bloomberg, LNG use across the European Union is on the rise. “Imports to the 28-member states increased an annualised 22 percent at the end of the third quarter, with nations such as the UK and Spain in the lead in developing import capacity,” says the report.
A European LNG terminal.
(A European LNG terminal. Image via Wikipedia).

Germany’s plans for LNG

The German government has signalled strong support for the current private initiatives to build the country’s first LNG terminal- likely to be located at Brunsbuettel near Hamburg. A second terminal is also planned near the Rhine river at Duisberg by the utility company RWE AG.

The Brunsbuettel import terminal will cost as much as 500 million euros to develop and is expected to be open by the end of 2022. Dutch infrastructure provider Gasunie has been commissioned to develop the terminal which will have an estimated capacity of 2-3 million tonnes per annum. The facility will also have a jetty for marine bunkering and a small-scale distribution of cargoes- including capacity for truck loading.

Aside from these immediate efforts, Germany is making moves to develop a long-term strategy to diversify the country’s gas supply. FNB Gas, Germany’s association of transmission operators has set out a 10-year development program that includes 7 billion euros ($8.6 billion) of projects.

Supply diversity a priority

The importance that the government is placing on this strategy is echoed in the comments of Economy Minister Bernd Buchholz, “Action is needed to diversify gas supply. It’s a clean fuel, it’s good for Hamburg, the region and for Germany. LNG will help cut Germany’s dependence on Russian imports.”

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Tags: Oil & Gas
Recent Comments
please i need a grinding job in this roject
sunday obi, 23 March 2018
Please , I need a job for the Construction and operation of this Terminal Project.
Sunil Kataria, 26 March 2018
Please, i need a job in Material Planner
santhosh mani, 09 April 2018
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