The German government has announced plans for the fifth Floating LNG Storage and Gasification Unit (FSRU) as part of an effort to replace the gas it had previously imported from Russia.
Texas-based Excelerate Energy has signed an agreement with ENGIE, which is responsible for hiring FSRU on behalf of the German Federal Government. Tree Energy Solutions (TES), responsible for the development and operation of the FSRU, will be located in the port of Wilhelmshaven.
The fifth FSRU, organized by the government and scheduled to start at the beginning of the 2023 season, will have an annual import capacity of approximately 5 billion cubic meters (cbm) with a five-year agreement. According to the government, this agreement will provide about five percent of the annual gas consumption in Germany. It will also contribute to increasing the energy security of Europe and Germany.
Robert Habeck, the Federal Minister for Economic Affairs and Climate Protection, said:
“By importing liquefied natural gas, we are making ourselves less dependent on imports of Russian pipeline gas. All the steps that get us out of the uncertainty of Russian imports as quickly as possible are more necessary than ever in these times.”
Russia exported 142 billion cubic meters of natural gas to Europe through pipelines in 2021. Germany is one of the largest users, consuming around 95 billion cubic meters of gas per year. About half of Germany’s LNG supply was imported from Russia. Previously, Germany did not have regasification facilities, but the country is now accelerating LNG imports. The federal government announced in May that it has committed more than $3 billion to launch its LNG import program.
Energy giants RWE and Uniper have signed agreements to launch the country’s first liquefied natural gas import terminals.
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