Germany is rapidly constructing a network of liquefied natural gas (LNG) import terminals, a pivotal shift aimed at securing its energy supply and reducing reliance on Russian gas following the invasion of Ukraine. As of late November 2023,Germany has brought three LNG terminals online – in Wilhelmshaven,Brunsbüttel,and Lubmin – with plans for at least five more,representing a dramatic acceleration of infrastructure development previously stalled for years.
The urgency stems from Russia’s curtailment of gas deliveries through the Nord Stream pipeline, which previously supplied around 55% of Germany’s gas needs. This energy crisis prompted a scramble to diversify supply, with LNG emerging as a key alternative. The new terminals are designed to receive shipments from countries like the United States, Qatar, and Norway, aiming to cover approximately a third of Germany’s previous Russian gas imports by the winter of 2023/2024. The long-term implications include a reshaping of Germany’s energy landscape, increased geopolitical leverage for LNG exporting nations, and a potential impact on global gas markets.
The first operational terminal, Uniper’s facility in Wilhelmshaven, began receiving its inaugural LNG cargo on December 19, 2022, from the Free State of Qatar. the Brunsbüttel terminal,operated by Deutsche Energy Terminal,followed in February 2023,and the Lubmin terminal,a floating terminal,began operations in November 2023. These initial terminals have a combined regasification capacity of around 23 billion cubic meters per year.
Further expansion includes plans for terminals in Stade, planned to be operational in 2027, and possibly in Emden and Hamburg. The German government has committed notable funding and streamlined approval processes to expedite the construction, including utilizing a special energy law passed in response to the crisis.According to German Economy Minister Robert Habeck, the goal is to create a robust and diversified gas supply infrastructure that ensures energy security for the country. ”We are making ourselves self-reliant of Russian gas,” Habeck stated in November 2023.
Though, the rapid build-out isn’t without challenges. Concerns remain regarding the long-term environmental impact of LNG infrastructure, including methane emissions, and the need for corresponding pipeline infrastructure to distribute the gas across Germany. Additionally,securing long-term LNG supply contracts and managing price volatility are ongoing considerations as Germany navigates its energy transition.
