Energy on the Elbe
Published by Oliver Kleinschmidt,
Assistant Editor
LNG Industry,
European demand for LNG is at its highest level in years. According to a report by the European Union Agency for the Cooperation of Energy Regulators, the EU imported 134 billion m3 of LNG in 2023, representing 42% of the region’s total gas imports and making the EU the top global LNG import market.
Demand for recent LNG consumption is being driven by several factors, including the ongoing geopolitical situations, Europe’s accelerated transition to renewable energy and a particular long and cold winter season. Countries across the region have been ramping up their LNG terminal infrastructure over the past two years to bolster their capacity, cater to growing regional demand and alleviate some of Europe’s LNG capacity pressures.
In Belgium, for example, the expanded Zeebrugge LNG import terminal came into operation at the start of the year, with a storage capacity of 566 000 m3 and a regasification capacity of about 6.6 million tpy. Meanwhile, in Italy, more than €1 billion (US$1.06 billion) is being invested in a new FSRU with an annual capacity of 5 billion m3 to complement an existing LNG terminal.
But it is Germany that is leading the pack with a steep rise in the number and capacity of its onshore LNG terminals. According to data from Statista, Germany has more planned and operational LNG terminals than any other country in Europe, with a total of 15 import terminals either planned, under construction or fully operational.
The Hanseatic Energy Hub at the Port of Stade just outside of Hamburg – ‘the heart of the German shipping industry’ – on the River Elbe, is one of the country’s newest facilities to support its ambitious drive to boost energy security and transition to more sustainable fuel options. Due to formally begin operations in 2027 following a total investment of more than €1.6 billion (US$1.7 billion), Germany’s first land-based LNG terminal will have a total capacity of 13.3 billion m3 and is forecast to meet more than 15% of Germany’s existing demand for LNG, whilst also managing other low-carbon energy sources, such as ammonia and hydrogen, and also being entirely emission free.
The pieces are already being put in place to ensure the Hub will be firing on all cylinders by 2027. In December 2023, GAC Germany provided ship agency and logistics support to LNG carriers to ensure their efficient unloading and turnaround at ports elsewhere in the country, drawing on the Group’s experience serving the gas sector in Germany and across Europe, as well as its dynamic footprint at some the LNG sector’s leading markets.
Until the terminal is operational, however, the Port of Stade is also a crucial location for Germany’s regasification capabilities. In March 2024, to shore up its LNG import capabilities, the port became home to the FSRU Energos Force, the first unit in Stade and the fourth overall in Germany. Similar vessels are operating at the Brunsbüttel and Wilhelmshaven terminals, with another due to come online later this year. Those four FSRUs are only expected to be temporary until all of Germany’s planned terminals are fully operational.
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Read the article online at: https://www.lngindustry.com/special-reports/01082024/energy-on-the-elbe/
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