Germany is rapidly constructing a networkโ of liquefiedโ natural gas โข(LNG) import terminals, a โฃpivotal shift aimed at securing its energy โsupply and reducing โrelianceโค on Russian gas following the invasion of Ukraine. As of late November 2023,Germany has brought three LNG terminals online – โin Wilhelmshaven,Brunsbรผttel,and Lubminโ – with plans for at least five more,representing a dramatic acceleration of infrastructure developmentโค previously stalled for years.
The urgency stems โfrom Russia’s curtailment of gas deliveries through โขthe Nord Stream pipeline, which previously supplied around 55% of Germany’s gas needs. This energy crisisโ prompted a scramble to diversify supply, with LNG โemerging as aโข key alternative. The โฃnew terminals โขare designed to receive shipments from countriesโฃ like the โUnited States, Qatar, and Norway, โaimingโค to cover approximatelyโ a third of Germany’s previousโ 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, โbegan receiving its inaugural LNG cargo on December 19, 2022, โขfrom the Free Stateโค ofโ Qatar. โขthe โฃBrunsbรผttel terminal,operated by Deutsche Energy Terminal,followed in February 2023,and the Lubmin terminal,a floating terminal,began operations in November 2023. โฃ 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 beโฃ operational in 2027, andโฃ possibly in Emden and Hamburg. The German government has committed โnotable funding and streamlined โขapproval processes to โexpedite the construction, including utilizing a special energy law passed in response to the crisis.According to German Economy Minister Robert Habeck,โฃ the goal is toโค create a robust and diversified gas supply infrastructure that ensures energy security for the country. โ”We โขare making ourselves self-reliant of Russian gas,” Habeckโค stated in November 2023. โ
Though, the rapid build-out isn’t without challenges. Concernsโฃ remain regarding theโฃ long-term environmental impact of LNG infrastructure, including methane emissions, and theโ need for corresponding pipeline infrastructure to distribute the gas across โคGermany. Additionally,securing long-term LNG supply contracts and managing price volatility are ongoing considerations as Germany navigates its energy transition.
