Germany releases funds for floating liquid gas terminals

Germany has committed almost 3 billion euros to build floating LNG terminals and reduce its energy dependency on Russia.

Germany, which wants to rid itself of its dependence on Russian gas, wants to acquire floating liquefied natural gas (LNG) import terminals, for which it has cleared a turnover of nearly 3 billion euros, the finance ministry said on Friday. “Dependence on Russian energy imports must be reduced quickly and sustainably. Floating LNG terminals make an important contribution to this, for which we have to release funds,” tweeted Finance Minister Christian Lindner.

The Ministry of Finance told the AFP news agency that a total of 2.94 billion euros had been made available for the rental of these huge LNG tankers. Europe and Germany in particular are turning to LNG to reduce dependency on Russia.

A total of around twenty countries export the liquefied gas transported by ship, the three largest suppliers of which are Australia, Qatar and the USA. Liquefied to take up less space, the LNG is regasified on arrival for distribution. However, unlike several European countries, Germany does not have a land terminal for processing imported LPG. For now, it has to use terminals installed in other EU countries, which limits its import capacity. Since the Russian invasion of Ukraine, Berlin has restarted projects to install LNG terminals, but they will take a few years.

ship rental

Meanwhile, Europe’s leading economy, whose powerful industry is a major gas consumer, wants to equip itself with these floating regasification terminals. According to several German media, the government, together with private partners, is considering renting three or even four ships to be stationed in ports in the North Sea or Baltic Sea. Some of these systems could be up and running as early as next winter.

The ministry does not say whether the availability of floating terminals is guaranteed when these ships are currently in high demand from all countries that need to reduce their dependence on Russian gas. Germany has imported an average of 55% of its gas from Russia via onshore pipelines in recent years. According to the Ministry of Economic Affairs, this share was reduced to 40% by the end of the first quarter of 2022 in favor of higher imports from the Netherlands, Norway and LNG. The government does not consider it realistic to be able to do without Russian gas before mid-2024.

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