Deprived of Russian Pipelines, Germany Turns to Liquefied Gas

In the North Sea lies Germany's most strategic construction site: the construction of the country's first liquefied gas terminal.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

At the end of a windswept pier on the North Sea lies Germany’s most strategic construction site: the building of the country’s first liquefied gas terminal.

Located near the port of Wilhelmshaven on the North Sea coast, this platform will be able to supply, as of this winter, the equivalent of 20% of what Russian gas imports to Germany represented until recently.

They were stopped in the wake of the war in Ukraine.

A total of five projects have been launched this year by the government at great expense to compensate for the end of Gazprom deliveries.

From 2023 onwards, the project will deliver 25 billion cubic meters per year, half the capacity of the Nord Stream pipeline.

– Trucks –

On the construction site in Wilhelmshaven, workers dressed in fluorescent yellow are working in the drizzle on the surface of a half-finished concrete platform that is emerging from the water.

On land, a ballet of trucks brings pieces of grey pipe to the construction site, transported by cranes, before being linked together to connect the terminal to the existing 28-kilometer network.

LNG terminals allow the regasification of natural gas imported by sea, which has first been liquefied to make it more transportable.

They consist of an offshore platform connected by pipes to the onshore gas network.

A boat called FSRU is moored there, rented for several years.

It stores and regasifies liquid gas.

Unlike other European countries, Germany had no such equipment either onshore or offshore, preferring to benefit from the cheap resource from Russian pipelines.

But after the invasion of Ukraine, Russia first significantly reduced its deliveries, which previously accounted for 55% of German imports, before stopping them in early September.

To ensure its energy security and save its gas-intensive industry, Berlin is investing heavily in LNG.

The government has already signed agreements with Gulf countries such as the United Arab Emirates and Qatar to import more liquefied gas.

Berlin has also released three billion euros to lease FSRU vessels to equip its terminals.

– Environment –

The country passed a law in the spring that significantly accelerated the procedures for opening terminals quickly.

In Wilhelmshaven, the construction work is progressing rapidly. These networks can be seen installed in the middle of fields or pastures where dairy cows are still grazing.

The terminal should therefore be completed “as early as this winter,” Holger Kreetz, chief operating officer of the German energy group Uniper, which manages the project, told AFP.

This unusual speed is a sign that the government considers this subject a priority: “Normally, we complete a project like this in 5 or 6 years,” adds Mr. Kreetz.

The initiative is generally well received in a city marked by deindustrialization and where the unemployment rate exceeds 10%, which is almost twice the national average.

“It’s good that it’s in Wilhelmshaven (…) It will bring back jobs,” Ingrid Schon, 55, told AFP, as she passed by on the town’s main street.

On the contrary, some environmental associations denounce the risks associated with the acceleration of environmental impact assessment procedures.

Young activists of the German movement “Ende Gelände” blocked the construction of the Wilhelmshaven for one day in August.

For the DUH association, the project “irreversibly destroys sensitive ecosystems and will endanger the living space of porpoises”.

The origin of the imported gas, which could be the result of hydraulic fracturing in the United States, a practice that is environmentally controversial, is also being questioned.

These criticisms have been brushed aside by Climate Minister Robert Habeck, who is nevertheless an environmentalist, and who insists that the government’s priority is “energy security”.

By 2030, the site is to be converted to green hydrogen, a clean technology in which Berlin wants to become the champion in the coming decades.

Talen Energy launches $1.2bn debt financing and expands credit facilities to support strategic acquisitions of two combined-cycle natural gas power plants.
Driven by rising electricity demand and grid flexibility needs, natural gas power generation is expected to grow at an annual rate of 4.8% through 2030.
Talen Energy secures $1.2bn term financing and increases two credit facilities to support the acquisition of two natural gas power plants with a combined capacity of 2,881 MW.
Tenaz Energy finalised the purchase of stakes in the GEMS project between Dutch and German waters, aiming to boost production to 7,000 boe/d by 2026.
Sembcorp Salalah Power & Water Company has obtained a new 10-year Power and Water Purchase Agreement from Nama Power and Water Procurement Company, ensuring operational continuity until 2037.
Eni North Africa restarts drilling operations on well C1-16/4 off the Libyan coast, suspended since 2020, aiming to complete exploration near the Bahr Es Salam gas field.
GOIL is investing $50mn to expand its LPG storage capacity in response to sustained demand growth and to improve national supply security.
QatarEnergy continues its international expansion by acquiring 27% of the offshore North Cleopatra block from Shell, amid Egypt’s strategic push to revive gas exploration in the Eastern Mediterranean.
An analysis by Wood Mackenzie shows that expanding UK oil and gas production would reduce costs and emissions while remaining within international climate targets.
Polish authorities have 40 days to decide on the extradition of a Ukrainian accused of participating in the 2022 sabotage of the Nord Stream pipelines in the Baltic Sea.
The Japanese company has completed the first phase of a tender for five annual cargoes of liquefied natural gas over seven years starting in April 2027, amid a gradual contractual renewal process.
Baker Hughes has secured a contract from Bechtel to provide gas turbines and compressors for the second phase of Sempra Infrastructure’s LNG export project in Texas.
Targa Resources will build a 500,000 barrels-per-day pipeline in the Permian Basin to connect its assets to Mont Belvieu, strengthening its logistics network with commissioning scheduled for the third quarter of 2027.
Brazilian holding J&F Investimentos is in talks to acquire EDF’s Norte Fluminense thermal plant, valued up to BRL2bn ($374 million), as energy-related M&A activity surges across the country.
Chevron has appointed Bank of America to manage the sale of pipeline infrastructure in the Denver-Julesburg basin, targeting a valuation of over $2 billion, according to sources familiar with the matter.
Hungary has signed a ten-year agreement with Engie for the annual import of 400 mn m³ of liquefied natural gas starting in 2028, reinforcing its energy diversification strategy despite its ongoing reliance on Russian gas.
Wanted by Germany for his alleged role in the 2022 sabotage of the Nord Stream pipelines, a Ukrainian has been arrested in Poland and placed in provisional detention pending possible extradition.
An unprecedented overnight offensive targeted gas infrastructure in Ukraine, damaging several key facilities in the Kharkiv and Poltava regions, according to Ukrainian authorities.
The Dunkirk LNG terminal, the second largest in continental Europe, is seeing reduced capacity due to a nationwide strike disrupting all French LNG infrastructure.
Russia’s liquefied natural gas output will increase steadily through 2027 under the national energy development plan, despite a 6% drop recorded in the first eight months of 2024.