Share of LNG in gas imports remains low

Energy - Share of LNG in gas imports remains low

So far, only a small proportion of German gas imports have been transported via the billion-euro LNG infrastructure for importing liquefied natural gas. This is according to data from the Federal Network Agency.

According to the data, around 65.7 terawatt hours of LNG were imported between the opening of the first German LNG terminal in Wilhelmshaven a year ago and the beginning of December 2023. Germany's total gas imports during this period amounted to 933.4 terawatt hours. The LNG share is therefore 7 percent.

Important building block for independent supply

The German government had forecast LNG import capacities of 13.5 billion cubic meters of gas for this year. This corresponds to more than 130 terawatt hours, which is double the amount of LNG that has actually been imported to date. The traffic light coalition had pushed ahead with the import because the liquefied natural gas would make a significant contribution to securing Germany's energy supply.

"Even if we do not yet need to fully utilize the capacities of the LNG terminals, the terminals are an important building block for an independent and secure energy supply in Germany," said Kerstin Andreae, Chairwoman of the Executive Board of the German Association of Energy and Water Industries(BDEW). "We can currently obtain pipeline gas more cheaply. However, the situation on the energy markets is still tense. It is therefore important that we have the LNG terminals."

The impending gas shortage last winter is still fresh in people's minds, Andreae continued. The government had therefore acted well to avoid such situations as a precaution.

Further LNG terminals planned

The LNG terminal in Wilhelmshaven, Lower Saxony, was the first in Germany to feed gas into the grid on December 21, 2022. With a feed-in of 42.6 terawatt hours, it is also the most important German LNG terminal to date, according to data from Europe's gas infrastructure operators (GIE), to which the Federal Ministry of Economics also refers. According to the data, Brunsbüttel in Schleswig-Holstein has contributed 12.8 terawatt hours since the end of March. Since the end of April, a private terminal in Lubmin (Mecklenburg-Western Pomerania) has also contributed 6.7 terawatt hours.

A fourth LNG terminal will be handed over to the state of Lower Saxony and the operator in Stade on Saturday. Two more floating terminals are to follow in Wilhelmshaven and on Rügen in 2024.

Stationary jetties are also planned in the future - also in order to be able to import hydrogen produced in the most climate-friendly way possible. However, critics fear that the LNG infrastructure will create more capacity for fossil fuels than would be necessary to replace the previous gas imports from Russia.

Germany imported the most gas this year, around 390 terawatt hours (TWh), from Norway, followed by the Netherlands (just under 232 TWh) and Belgium (just under 197 TWh). No more gas flowed directly to Germany from Russia due to the war in Ukraine. According to the industry association BDEW, Germany purchased by far the largest share of LNG (84%) from the USA. There, the gas is often extracted using the controversial fracking method. However, according to BDEW, the origin of the individual tankers and the composition of the LNG transported cannot always be clearly determined.

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1. Despite the billion-euro LNG infrastructure, only 7% of Germany's gas imports during the period were LNG, totaling approximately 65.7 terawatt hours.
2. Kerstin Andreae, Chairwoman of BDEW, acknowledged that while LNG terminal capacities aren't fully utilized yet, they are crucial for a secure energy supply in Germany.
3. Germany's biggest LNG terminal, located in Wilhelmshaven, Lower Saxony, has contributed 42.6 terawatt hours since its opening in December 2022.
4. The German government had anticipated LNG import capacities of 13.5 billion cubic meters of gas for this year, which equivalents to over 130 terawatt hours, yet only 130 terawatt hours have been imported as of now.
5. The Federal Government, in an effort to secure energy supply, had promoted LNG imports, as natural gas plays a significant role in their strategy.
6. Wolfgang Schäuble, Federal Minister of Economics, will officially hand over the fourth LNG terminal in Stade, Lower Saxony, to the state and the operator on Satuday.
7. Both Wilhelmshaven and Rügen will see the construction of two more floating terminals in 2024, as part of Germany's plans to increase its LNG import capacities.

Source: www.stern.de