Germany receives $44 mln to fund LNG terminal

Germany receives $44 mln to fund an LNG terminal

Germany

BERLIN, July 28, 2023 – The European Commission has approved around USD 44.3 million to support construction of an onshore LNG terminal in Germany, the executive body of the EU reported on Thursday.

The asset will be located in Brunsbüttel and have the capacity to handle 10 bcm (353 bcf) of gas per year.

It will consist of import, storage and distribution facilities and is expected to come on line by the end of 2026.

The facility will be owned by Dutch gas infrastructure company Gasunie with a 40% stake, local utility RWE with a 10% stake and the German government through investment bank KfW with a 50% stake.

The asset is located near a new FSRU that began operations earlier in 2023. Another FSRU is expected to come on line this year in the same area.

The deal is in line with the EU’s REPowerEU Plan, which aims to reduce the dependency on Russian fossil fuels and support the region’s energy transition to renewables.

The German government has proposed three onshore terminals at Stade, Brunsbuttel and Wilhelmshaven that could be commissioned by 2026 and 2027 and will bring the country’s LNG import capacity to 54 bcm (1.9 tcf).