In Germany, Uniper wants to increase its LNG imports. These deliveries would be routed through terminals in the United Kingdom and the Netherlands.
LNG, an alternative solution
In Germany, Uniper, one of the largest historical buyers of Russian gas in Europe, is now focusing on LNG. Indeed, particularly affected by the cessation of Russian imports, notably via Nord Stream, the company is experiencing difficulties. With gas prices soaring in the markets, the company had to buy replacement volumes at high costs.
Thus, LNG becomes the solution to replace Russian gas. In its third quarter results report, Uniper confirms the replacement of Russian gas with LNG deliveries. However, although Germany has sufficient stocks for this winter, concerns remain.
For Tiina Tuomela, CFO at Uniper, the weather will play “a key role”. Indeed, due to mild weather and reduced demand, European gas prices are falling. However, prices are projected to reach €131.10/MWh in 2023, next winter.
Reconfiguration of deliveries
Germany currently has no LNG import infrastructure. However, efforts to develop a number of terminals intensified after the invasion of Ukraine. Uniper plans to increase imports through its long-term capacity reservations.
Uniper says it is increasing its capacity rights at Gate, Netherlands, by 1Gm3/year for three years starting in October. In addition, the company is also working on the deployment of a new floating LNG terminal in the German port of Wilhelmshaven. Germany is also planning a state-supported terminal in Brunsbuttel, which is expected to start up at the end of the year.
Uniper claims to be able to supply LNG to both terminals as soon as they come on stream. The German company wants to diversify and secure its supplies. Finally, Uniper announced that it is working jointly with the Japanese company JERA to optimize their LNG portfolios.
