Shell joins German LNG for Brunsbüttel import
Shell and the German LNG Terminal joint venture have signed a memorandum of understanding on the import of LNG through the planned terminal in Brunsbüttel.
The parties signed the deal following the latest developments in relation to the construction of an energy terminal in Brunsbüttel. Under the MoU, Shell will make a long-term booking of a substantial part of the terminal’s capacity for the LNG import.
Both Shell and German LNG are currently working towards a binding agreement on the scope and duration of their partnership. The hope is to complete it as soon as possible.
“The signed MoU with Shell, as well as the noticeable increase in interest from the market, demonstrates the importance of the import terminal in Brunsbüttel,” said Michael Kleemiß, managing director of German LNG Terminal.
“The terminal will not only contribute to energy supply security in Germany but also, to the necessary climate-neutral energy supply.”
Fabian Ziegler, managing director of Shell in Germany, said: “I am delighted with our agreement with German LNG Terminal. It is a key step in contributing to security of supply in Germany in the near term as well in more widely in Europe.”
“With LNG we are helping to meet energy demand, as well as helping to limit CO2 emissions – a crucial part of the energy transition – as natural gas is the cleanest-burning hydrocarbon. And in future the terminal should be convertible to hydrogen or derivatives thereof such as ammonia.”
Importance of Brunsbüttel LNG terminal
Back in 2017, Gasunie LNG, Vopak LNG, and Oiltanking formed the German LNG Terminal as a joint venture. The plan was to build and operate an LNG terminal at the Brunsbüttel, Northern Germany. However, Vopak LNG and Oiltanking revealed plans on leaving the group of shareholders ultimately by May 2022.
The terminal will have two LNG tanks with a capacity of 165,000 cubic metres each and an LNG regasification plant. The plans foresee an annual throughput capacity of 8 billion cubic metres (natural gas).
It will specifically feature a jetty with two berths for LNG carriers (up to size QMax) and smaller LNG ships. Also, it will have facilities for unloading and loading the ships.
In early March, the German state-owned bank KfW, Gasunie, and RWE signed an MoU on the joint promotion of the construction and operation of the terminal.
In the light of Germany’s efforts to not be dependent on Russian gas, Gasunie revealed the talks with the German government about the construction are in the final stages.
“Gasunie hopes to start construction of the terminal before the end of the year. In addition to LNG, this terminal will be made suitable for importing (green) hydrogen as well.”
The company is also taking into consideration the future import of hydrogen derivatives. Therefore, preparations of suitable plant components for the potential import of alternative energy sources are at hand.