Germany’s Deutsche ReGas has signed an agreement with French energy major TotalEnergies for the installation and operation of floating storage and regasification unit (FSRU) in the industrial port of Lubmin, the touchdown point of the Nord Stream pipelines from Russia.
The FSRU is expected to be operational as early as December 2022 and feed up to 4.5bn cu m of natural gas annually into the German transmission network.
As the port of Lubmin and the Greifswalder Bodden, which has to be passed, do not have the necessary depth, Deutsche Regas plans to set up a floating storage unit (FSU) in the Baltic Sea where liquified natural gas (LNG) carriers with a capacity of up to 170,000 cu m would be able to dock, after which smaller shuttle vessels would transport the LNG to the FSRU.
The company, founded by Ingo Wagner and Stephan Knabe, said it could also connect the FSRU to underwater pipelines if the necessary legal requirements are met and add up to two additional units to deliver a total of over 15bn cu m of gas per year.
Although the signing took place in the presence of the State Secretary in the Federal Ministry of Economics, Michael Kellner, and the Economics Minister of Mecklenburg-Western Pomerania, Reinhard Meyer, the project is privately financed and is outside the LNG import strategy pursued by the German government.
“In these challenging times, we need pragmatic solutions to further secure the energy supply for Germany. Lubmin in Western Pomerania can play a key role in this. LNG is an important element in further reducing dependence on Russian gas supplies. The aim is to continue to make us independent of third parties. With the signing, both companies are taking an important and necessary step together,” Minister Meyer said.
Germany has already locked in four FSRUs, two from Norway’s Höegh LNG and another pair managed by Greece’s Dynagas. The first unit is expected to commence operations at the end of this year.
