German LNG Project Singles Out EPC Candidate
The developers behind what is expected to be Germany's first LNG import terminal have cleared a German-Spanish consortium as the only candidate to enter the final tender phase for an engineering, procurement and construction (EPC) contract.
German LNG Terminal (GLT), a joint venture between the Netherlands' gas grid operator Gasunie, Dutch chemical storage firm Vopak and German logistics firm Oiltanking, announced on June 25 they had singled out a group comprising Spanish firms Cobra Instalaciones y Servicos and Sener Ingenieria y sistemas and Germany's TGE Gas Engineering to proceed to the phase. There had been five bidders originally.
The phase will involve a "comprehensive value-improvement exercise and a detailed price actualisation to make the project more cost efficient," GLT said. The aim is to finalise an EPC contract by the end of 2020. Once this is done, design and engineering work can get underway to sort out the purchase of long-lead products.
GLT plans to build an import facility in Brunsbuettel in northern Germany capable of taking ashore 8bn m3/yr of gas, helping the country diversify its supply mix and meet rising demand. It is expected to start up in early 2023. German power utility RWE is expected to conclude LNG import contracts by the end of this year covering the bulk of its capacity, paving the way for GLT to take a final investment decision (FID). In May last year, it hoped to take FID by year end.
GLT began its search for an EPC contractor in June last year. It noted that the selected group had extensive experience in oil, gas and power projects worldwide, and had worked on other LNG terminals in Belgium, France, the Netherlands and Spain. GLT added it was applying for permits for the development of port infrastructure, including waterside facilities.
There are other LNG import projects underway in Germany, which relies primarily on piped gas from Russia, Norway and the Netherlands but they are at a less advanced stage. Germany's Uniper is looking to position a floating storage and regasification unit (FSRU) at Wilhelmshaven, and plans are afoot to construct a third facility at Stade.