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    RWE to Finalise German LNG Import Contract by Year-end


The pair also agreed to jointly explore opportunities for hydrogen.

by: Joseph Murphy

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RWE to Finalise German LNG Import Contract by Year-end

German energy company RWE and German LNG Terminal, the venture developing Germany's first regasification terminal at Brunsbuettel, intend to finalise contracts for LNG imports by the end of this year, the pair said on June 18.

RWE, Germany's biggest power producer, is expected to reserve the bulk of the plant's 8bn m3/yr of regasification capacity. German LNG is a joint venture between the Netherlands' Gasunie and partners Vopak and Oiltanking.

"Currently the parties are in the final phase of negotiating fully binding legal contracts for LNG imports," German LNG and RWE said in a joint statement. They "expect this process to be finalised by the end of 2020, putting German LNG in a position to reach a positive investment decision shortly thereafter."

The partners also signed they had signed a memorandum on jointly exploring opportunities for green hydrogen, produced using renewable energy. 

"RWE’s interest in jointly exploring the import of hydrogen in Brunsbuttel proves the strategic importance of the site and the project," German LNG's managing director Rolf Brouwer said. "Hydrogen produced from renewable energy sources is in line with Germany’s goal to become climate-neutral by 2050." 

Germany has just unveiled a new strategy to develop hydrogen as an energy source, aimed at establishing 10 GW of hydrogen generation capacity by 2040. But the plan has been criticised for supporting only green hydrogen and excluding other types like blue, produced from natural gas.

There are other plans for LNG import plants in Germany, which currently relies on piped gas supplies from Russia, Norway and other sources, as well as domestic production. 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.