Germany looking to increase investments in LNG terminals

The German government has approved a plan that would make it easier for companies to invest in new LNG terminals in order to diversify the country’s sources of gas.

The federal government noted in a statement that the legislation is important for the supply security of gas, as well as competitiveness, in Germany. It is looking to expand the number of supply routes and sources as much as possible.

The government noted that in order to transfer natural gas from vessels to the transmission network, the missing infrastructure has to be built.

So far, the construction of an LNG import terminal was the responsibility of private companies, which has so far proven unattractive. Additionally, a pipeline connecting the terminal to the national transmission network is required. The costs of the connecting pipeline should also be covered by the project proponent.

With the new legislation, network operator, not the project proponent, will be required to provide the connection from the terminal to the transmission network. The construction and maintenance costs will, therefore, be transferred to the end consumer although the rise in service costs should be negligible for the consumers, the government said.

At the moment, there are three LNG import projects proposed in Germany, namely the Brunsbuettel facility, one at Wilhelmshaven, and another at chemical firm Dow’s Stade site.

The legislation is yet to be approved by the parliament, the statement reads.