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    German LNG Terminal Tenders for EPC


The aim is to select a winner later this year and to start work on long-lead items early 2020.

by: William Powell

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Natural Gas & LNG News, Europe, Corporate, Contracts and tenders, Political, Infrastructure, News By Country, Germany

German LNG Terminal Tenders for EPC

German LNG Terminal will start the engineering, procurement and construction prequalification (EPC) process for its planned 8bn m³/yr (6mn metric tons/yr) LNG terminal in northern Germany "this month," it said June 19.

Potential EPC contractors will receive a prequalification package and can submit lump-sum offers between August and October. The winning bidder(s) will be announced in the first quarter of 2020, followed by the release of an early (or limited) notice to proceed to start scheduled early activities.

German LNG Terminal is a joint venture of Dutch companies Vopak and Gasunie as well as German company Oiltanking, part of Marquard & Bahls. They share a "firm commitment to build Germany’s first LNG terminal."

Vopak and Gasunie have already successfully joined forces to build and operate the Gate terminal in Rotterdam, where capacity was all sold on long-term reservation contracts, meaning that the shippers bore the financial risk of underutilisation.

German LNG Terminal said Brunsbuettel offers easy access to markets in northwest Europe, Scandinavia and the Baltics and is close to Hamburg with LNG bunkering potential. It is also in the ChemCoast Park, which has industrial customers with high energy needs. It also enjoys strong support of both local and federal government as it would contribute to gas supply diversification and provides efficient supply chains for LNG as an alternative fuel.

The market’s reaction to the Brunsbuettel terminal project has been positive, the JV said. with interest from future customers reflected in the execution of several heads of agreements – including one with Swiss Axpo, which is considering Canadian LNG from the planned Goldboro project, due to take final investment decision this year. The application for exemption from regulated third party access and the permit application are based on 8bn m³/yr terminal capacity.

There are also plans for another LNG terminal on the German coast, which was being promoted by Uniper. But in recent months its senior staff have all left or given notice to quit, as Finnish Fortum seeks more control of the company and blamed management for being obstructive. Uniper's new CEO and CFO only began work this month; while the commercial and technical officers leave later this year.