Secure energy supply - Construction of Germany's first onshore LNG terminal has begun
The construction of the first German LNG import terminal on land officially began on a Friday. The terminal in Stade near Hamburg is expected to go into operation in 2027. Several private companies are funding its construction. The costs, according to their statements, are around one billion Euros.
Niedersachsen's Minister-President Stephan Weil (SPD) said: "I am very happy that we are showing this in the energy supply sector in Germany. We can do it quickly, we just have to make it happen."
CEZ, the Czech energy conglomerate, has booked LNG deliveries in Stade, which is why the Industry Minister of the state, Jozef Síkela, was present at the groundbreaking ceremony. Síkela said in German: "Every cubic meter of gas we don't have to import from Russia is a step towards reducing Russian influence in Europe."
Environmental associations criticize the construction of the terminal. One of them, BUND, is suing at the Federal Administrative Court in Leipzig against it. A court date has not been set yet, according to a spokeswoman for the German Press Agency.
The German government has promoted the construction of LNG terminals in the North and Baltic Seas since the Russian attack on Ukraine, to become independent of Russian gas supplies. In Germany, there are currently several floating terminals. These terminals, which consist of a special ship, are intended to be replaced by land terminals in the long term.
The consortium Hanseatic Energy Hub (HEH) with its headquarters in Hamburg is responsible for the project in Stade. HEH includes the Hamburg port logistics company Buss-Gruppe, the Swiss private equity firm Partners Group, the Spanish network operator Enagás, and the US chemical company Dow.
Terminals in Stade, Wilhelmshaven, and Brunsbüttel
In addition to Stade, terminals on land are also planned in Wilhelmshaven (also in Lower Saxony) and Brunsbüttel (Schleswig-Holstein). The construction of the terminal in Wilhelmshaven is expected to begin in 2026. The Federal Ministry of Economics assumes that it will go into operation around the middle of 2028. Preparatory measures for the construction of the terminal in Brunsbüttel have been running since March. The plant in Brunsbüttel is expected to start regular operation early in 2027.
Currently, three floating terminals in Germany import LNG. These are located in Wilhelmshaven, Brunsbüttel, and Mukran (Mecklenburg-Vorpommern). Another floating terminal, which had already been in operation, is being relocated from Lubmin to Mukran. Further floating terminals in Wilhelmshaven and Stade are expected to go into regular operation in the second half of the year.
How LNG gets into the gas pipelines
The fossil energy carrier LNG is cooled down to temperatures below minus 160 degrees Celsius at extreme temperatures and loses a large part of its volume from the gaseous state. From 600 cubic meters of gaseous substance, one cubic meter of liquefied natural gas is obtained.
After transport in special tankers, LNG is converted back into the gaseous state at terminals at the destination and fed into the natural gas network - or directly used as fuel and energy carrier. Due to the CO2 emissions during transport and combustion, the raw material is politically controversial. Critics also point out that more imports would lead to the expansion of the controversial US LNG and fracking industry.
The chairwoman of BUND Niedersachsen, Susanne Gerstner, criticizes that the Stade Terminal creates new long-term dependencies. "The planned operation of the LNG terminal by the end of 2043 is in stark contrast to the plans of the state of Lower Saxony to be climate neutral by 2040," she said. According to the LNG Acceleration Law, the terminal must be converted to the use of liquefied ammonia by 2044. The BUND complains about the lack of evidence for this. The project leaders deny this.
Low LNG share in German gas imports
Germany imports relatively little natural gas via LNG terminals. The share of the total gas imports amounted to 6.4 percent in the first half of the previous year, according to data from the Federal Network Agency in Bonn. Between the beginning of June and the 25th of June, it was around eleven percent, as the Federal Network Agency informed the German Press Agency on request.
According to the International Gas Union, 20 countries exported liquefied natural gas worldwide in 2023. The USA (21 percent of the global total volume), Australia (20), Qatar (19), Russia (8), and Malaysia (7) were among the top exporters. The largest importers among the 51 countries were China, Japan, South Korea, and India, which together imported around half of the global LNG. Among the most important EU customers were France, Spain, the Netherlands, and Italy. Germany ranked 17th worldwide.
According to data from the Energy Institute, 549.2 billion cubic meters of LNG were traded worldwide in 2023, compared to 430.4 billion five years earlier and around 326.8 billion in 2013. The global demand was therefore particularly driven by the Asia-Pacific region.
- The territory of Lower Saxony, specifically Stade near Hamburg, hosts the construction of a LNG terminal funded by several private companies, with projected operation in 2027 and estimated costs of about one billion Euros.
- Stephan Weil, Minister-President of Lower Saxony and a member of SPD, expressed his satisfaction with the rapid progress in Germany's energy sector, highlighting the need for determination to bring plans to fruition.
- Jozef Síkela, the Industry Minister of the Czech Republic, attended the groundbreaking ceremony in Stade due to CEZ's booked LNG deliveries, commenting that every gas not imported from Russia reduces Russian influence in Europe.
- Environmental organizations, including the German BUND, are protesting against the construction of LNG terminals, with BUND filing a lawsuit against the Stade terminal at the Federal Administrative Court in Leipzig, yet awaiting a court date.
- The German government has backed the construction of LNG terminals in the North and Baltic Seas, aiming for independence from Russian gas supplies, and has seen success with floating terminals that will eventually be replaced by land terminals.
- The Hanseatic Energy Hub (HEH), headquartered in Hamburg, is responsible for the project in Stade, involving Buss-Gruppe, Partners Group, Enagás, Dow, and other partners, aiming to boost Germany's long-term energy supply.
- The Heinrich LNG terminal in Wilhelmshaven, another location in Lower Saxony, is expected to commence construction in 2026 and achieve operation around mid-2028, joining the Stade and Brunsbüttel terminals in Lower Saxony and Schleswig-Holstein.
- In addition to Germany, Major European nations like Ukraine and countries like Russia and Hamburg, continue to play significant roles in LNG markets as hubs for transport and energy supply, shaping the continent's energy landscape.
- The BUND criticizes that the Stade terminal creates long-term dependencies, raising concerns about its operation beyond 2043 and its alignment with Lower Saxony's climate neutrality goals by 2040, despite the LNG Acceleration Law's 2044 conversion deadline.
- Despite Germany's relatively low LNG share in gas imports in comparison to major countries like China, Japan, and South Korea, the ongoing construction and implementation of terminals will likely contribute to an increase in global LNG trade volumes and facilitate greater energy security across Europe.
