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    German LNG project secures regulatory waivers

Summary

The project's developers are "extremely confident" they will soon conclude binding contracts with customers and commission an engineering contractor.

by: Joseph Murphy

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Complimentary, NGW News Alert, Natural Gas & LNG News, Europe, Liquefied Natural Gas (LNG), Corporate, Investments, Political, Regulation, News By Country, Germany

German LNG project secures regulatory waivers

The project to build what could be Germany's first LNG import terminal has secured an exemption on tariff and network access regulations from the European Commission, its operator said on June 4, clearing the way for commercial contracts to be finalised with customers.

German LNG Terminal (GLT), a joint venture between Dutch gas grid operator Gasunie, Dutch chemical storage firm Vopak and German logistics group Oiltanking, aims to develop an 8bn m3/year regasification terminal in Brunsbuettel in north Germany.

"The commercial framework conditions for the LNG terminal have now been determined," GLT's managing director Rolf Brouwer said in a statement. "We are extremely confident that we will now soon be able to conclude binding contracts with our potential customers, and commission the EPC (engineering, procurement and construction) contractor. We hope that the planning permission procedures can take a decisive step forward in the near future. German LNG Terminal is ready to take this step too."

The GLT operating company told NGW in April that a provisional offtake deal signed in 2018 with Germany's RWE, covering "a substantial" part of the terminal's capacity, would be concluded in two or three months. Once that agreement is in place and a EPC contract finalised, GLT's shareholders will be ready to take a final investment decision, the operator told NGW.

GLT applied for the regulation exemption in 2018 and it was granted by German authorities in December last year, although that decision needed to be reviewed by the European Commission. 

"The terminal will contribute to the securing and diversification of the natural gas supply at the time of the energy transformation in Germany," GLT said. "With the possibility of handling green gases at the terminal, the terminal will play an important role in the energy supply of the future."