The German Government aims to build liquefied natural gas terminals
The problem is there are no LNG terminals in Germany for freighters to feed their cargo into the national pipeline system. But German Chancellor wants to change that as fast as possible. In response to Russia's war against Ukraine, it has been announced to build two LNG terminals in the country.
Other European nations are better prepared. Across the continent, there are now 37 such terminals, out of which 26 are located in EU member states. According to the European Commission, LNG imports cover about a quarter of the bloc's overall gas demand. Germany currently has to get LNG deliveries via terminals in Belgium, France and the Netherlands.
Germany does not want to rely on other European ports. Going forward, other European terminals will keep receiving LNG, and that they were already approaching full capacity levels. In the future, they won't be able to handle the overall demand on their own.
However those who questions on German LNG terminals are of the view that between January 2021 and January 2022 only some 40% of the terminals' capacity was used, saying there is still much room for maneuver.
There have been plans for LNG terminals in Germany for years. with the potential locations most frequently mentioned being the northwestern cities of Stade, Brunsbüttel and Wilhelmshaven. A request for a building permit could be handed to the authorities in Stade over the next couple of weeks. If everything goes according to plan, the terminal could be completed by 2026 and could take in 10% of Germany's gas requirements.
In the case of Stade, it would require an investment of €1 billion ($1.1 billion). So if it emerges that storage capacities and imports are enough to meet gas demand — even if no more gas comes via Russian pipelines, Germany may prefer to focus on expanding renewables.
`Gas today and Hydrogen tomorrow' is another option widely debated among planners and is the possible conversion of LNG terminals into green hydrogen terminals in the future. The German government is very much in favor of using more hydrogen as a source of energy in the decades ahead.
As not enough green hydrogen can be produced in Germany itself, it would have to be imported, and so LNG terminals could be part of the solution. Germany will need hydrogen terminals anyway, so Germany could use part of the LNG terminal infrastructure for hydrogen terminals.
Germany requires hydrogen terminals right from the start to implement the country's energy transition.
LNG terminals could not only handle gas made from renewables, but if Germany succeeds in raising the share of renewables in its energy mix to 80% by 2030, dependence on Russian gas would decrease considerably.
LNG terminals could also handle gas made from renewables. The idea of importing synthetic methane or biogas boils down to greenwashing, all the more so since producing synthetic methane uses too much energy. Biogas is only climate-friendly, if it's produced from residues, and available quantities of such gas are almost negligible.
The US would profit from German LNG terminals. more