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Germany’s new floating LNG terminal in Lubmin has been delayed by several weeks, according to Der Spiegel magazine.
The new floating LNG terminal was expected to launch at the beginning of December, but the project is still pending approval procedures. The LNG terminal is still expected to launch before the end of the year, a spokesman for Deutsche ReGas—the terminal operator—told Der Spiegel.
Demand for LNG floating storage and regasification units (FSRU) has increased substantially this year as Europe faces an acute energy supply squeeze with Russia taken out of the supply mix for many buyers. For Europe, it is a race against time to get these FLNG projects up and running.
The first FSRU intended for use at the Lubmin, Germany, facility arrived at the Mukran Port in late November. From there, it was set to make its way to Lubmin where it would eventually be deployed.
At the time the FSRU made it to Mukran, all the components necessary for LNG terminal completion were in the region—but Deutsche ReGas cautioned that commissioning could only take place after all required permits had been obtained. Germany’s Federal Network Agency has exempted their terminal from tariff and network access regulation for a period of 20 years.
The Lubmin terminal is expected to feed 4.5 billion bcm of gas annually into the German network.
Germany has other projects in the works as well, including at Wilhelmshaven, Stade, and Brunsbuttel.
Germany and its EU peers are facing an energy crisis this winter and next, with next winter expected to be more critical than this one. Like other EU members, Germany is facing steep gas prices, and is in the middle of sparring with other EU members over the level at which to cap gas prices in the bloc.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com