More gas from Russia soon?: Ministry clearly expects LNG glut

More gas from Russia soon?
Ministry clearly expects more LNG capacity

12/15/2022 8:51 am

Is Germany Enough Gas Capacity? According to a report, there may be overcapacity soon. According to the Ministry of Economy, more gas will be imported from Russia through floating LNG terminals in 2021 than in 2024.

According to a media report, the Federal Ministry of Economics is projecting significant overcapacity if all liquefied natural gas terminals are built in Germany. With regard to the planned floating terminals, the so-called “floating storage and regasification units” (FSRU), “the capacity of existing FSRUs as well as land-based terminals will exceed the level of 2021 gas import volumes from Russia,” Digital Media Service “table media” writes. He cites a confidential preparation report from the ministry for a meeting in the chancellery this week.

In accordance with this, ten floating terminals are planned on the North Sea and the Baltic Sea, six of which with state participation. From 2024, these floating terminals alone will have a capacity of 53 to 67 billion cubic meters of gas per year. Apart from this, three terminals are to be built on land by 2026, which will have a capacity of up to 50 billion cubic meters of gas.

For comparison: in 2021, only 54 billion cubic meters were imported from Russia through the pipeline to Germany. At the same time, overcapacity will be exacerbated by the fact that other EU countries are also importing significantly more liquefied gas as well as demand in Germany will drop significantly by 2030.

Fund stalled for sixth terminal

A safety buffer has been planned for LNG projects, the media service quoted the ministry as saying. For some projects, realization prospects are still subject to uncertainties. Against the background of possible surpluses, the budget committee stopped funding for the sixth terminal with the participation of the state.

According to the report, the Ministry of Economics states that for the planned LNG terminal in Hamburg, “there is currently no real alternative to commissioning” due to “line constraints”. LNG plays a key role in the federal government’s efforts to replace gas supplies from Russia.

In a study, however, the think tank E3G advocated that Germany should reduce its gas consumption and not restore old capacities. It must happen if we are to achieve our climate goals, Maria Pastukhova and Matthias Koch said recent from think tank In “Climate Lab” by NTV. It will also save a lot of money: “We are not talking about a two-year crisis. So we must ask ourselves: wouldn’t it be more profitable if we save now?” Padukova and Koch said.