Germany may not be able to start importing LNG due to terminals that cannot be phased out due to bad weather conditions. There is already a delay in delivery and projects may be delayed until 2023. This writes Bloomberg.
While Germany wanted to start importing LNG later this month, that plan appears to be under threat. Germany has to deal with strong winds, low temperatures and even high waves, and therefore is experiencing difficulties in the construction of LNG storage terminals.
Germany has three import terminals which are being expanded to accommodate an additional 20 billion cubic meters of LNG. Those 20 billion are the equivalent of more than 40 percent of the Russian gas Germany imported in 2021. However, the longer it takes to complete the expansion, the greater the risk for the German population. Especially now that the demand for heating is growing and becoming necessary.
“Time is too unimaginable for us,” Uniper CEO Klaus-Dieter Maubach said earlier this week. His company is building an LNG terminal in Wilhelmshaven. “But we are confident that we can complete construction this year.”
Rush
To further reduce dependence on Russian gas after the NordStream debacle, Germany has rushed to build infrastructure to accommodate higher LNG imports. Before that, the German government passed a law that significantly reduced the approval of such projects, and billions were spent on leasing import terminals. For example, companies whose terminals are being leased have promised some facilities that will be installed in the new terminals.
LNG has been crucial for Europe to replenish gas supplies for the coming winter. The continued influx of US and Qatari vessels into existing ports has brought down gas prices somewhat, but contracts are still four times more expensive than the average rate over the past five years.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
