Brunsbüttel FSRU

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Brunsbüttel FSRU, also known as Elbehafen LNG Terminal, is an operating floating regasification and storage unit (FSRU), a floating LNG import terminal, in Germany.[1][2]

Location

The terminal is proposed for Brunsbüttel near the Hamburg region.

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Project details

  • Operator: KN Energies[3]
    • Formerly Deutsche Energy Terminal GmbH (DET)[4]
  • Owner: German LNG Terminal (GLT)
  • Parent company: Gasunie (40%), Kreditanstalt für Wiederaufbau (50%), RWE (10%)[5][6]
  • Vessel: Hoegh Gannet[7]
  • Vessel operator: KN Energies[3]
    • Formerly Deutsche Energy Terminal GmbH (DET)[4]
  • Vessel owner: Hoegh LNG[7]
  • Vessel parent company: Morgan Stanley[7]
  • Location: Brunsbüttel, Germany
  • Coordinates: 53.9140009, 8.9760945 (approximate)
  • Capacity: 3.5-5 bcm/y[8]
    • Formerly 8 bcm/y[9]
  • Status: Operating[10]
  • Type: Import
  • Cost: €1 billion (US$1.4 billion)[11]
  • Start year: 2023[12]
  • Financing:
  • FID Status:
  • Associated infrastructure:

Background

The FSRU was proposed in 2022 in response to the European gas crisis and the Russian invasion of Ukraine. The vessel is to serve as a "forerunner" of the proposed onshore LNG terminal, Brunsbüttel LNG Terminal, slated to be online by 2026.[14]

In February 2022, as part of a package of measures designed to help reduce Germany's dependence on Russian gas imports, German Chancellor Olaf Scholz told the Bundestag that the federal government had decided to fast-track the construction of the Brunsbüttel terminal and the Wilhelmshaven LNG Terminal.[15] The Brunsbüttel project promoter Gasunie said in a statement: "Talks with the German government about the construction are in the final stage. Gasunie hopes to start construction of the terminal before the end of the year. In addition to LNG, this terminal will be made suitable for importing (green) hydrogen as well".[16]

In March 2022, Gasunie and the German state-owned bank KfW signed a memorandum of understanding to advance the project, with KfW becoming a shareholder in the German LNG Terminal company. As part of the deal, the existing other shareholders in the company – Vopak LNG and Oiltanking – will ultimately leave the company by May 2022. Gasunie and the German government were keen to accelerate the approval process for the project, which continues to be challenged by German environment groups, at "full speed". Once approval is granted, construction of Brunsbüttel would be able to start and is expected to take up to 3.5 years to complete.[17][18] KfW owns 50% of the project, Gasunie 40%, and Germany's largest power producer RWE has taken a 10% stake in the project.[19] Spiegel reported that the cost for the project was expected to be around €1 billion, an increase on previous estimations of €450 million.[20] Shell also signed a Memorandum of Understanding with German LNG Terminal under which it committed to making a long-term booking of a substantial part of the Brunsbüttel terminal's LNG capacity, with both parties working towards a binding agreement on the scope and duration of their partnership.[21]

German environmental NGO Deutsche Umwelthilfe (DUH) was critical of the project's fast-tracking, pointing out that on top of construction of the terminal itself, 80 kilometres of connecting pipelines would also have to be constructed. In addition, the terminal location in Brunsbüttel "is particularly problematic because of its proximity to nuclear facilities," according to DUH.[22] A legal opinion commissioned by DUH sets out how construction of the Brunsbüttel LNG terminal near to a former nuclear power plant and petrochemical facilities is not permissible under the Seveso Directive, a European Union directive aimed at controlling major chemical accident hazards.[23]

In July 2022, Gasunie announced that it expected construction of the facility to begin in September, and for it go online in late 2022/early 2023.[24]

In September 2022, construction began on a pipeline to connect the FSRU to the grid.[2]

As of 20 January 2023, the Hoegh Gannet vessel had moored at Brunsbüttel's Elbehafen port, though the terminal had yet to be formally commissioned.[12]

On 14 February 2023, the terminal received its first shipment and became operational.[10] Commercial operations began in May 2023.[25]

In July 2023, Lithuania's KN Energies (formerly Klaipedos Nafta) won a contract to operate the terminal. KN Energies is also contracted to operate Germany's Wilhelmshaven FSRU, Stade FSRU, and Wilhelmshaven TES FSRU.[26][27]

Articles and resources

References

  1. LNG Prime Staff (2022-07-12). "Update: Gasunie expects German FSRU terminal to launch this year". LNG Prime. Retrieved 2022-07-20.
  2. 2.0 2.1 Start of construction for Brunsbüttel LNG terminal. Bayern Innovativ. September 26, 2022.
  3. 3.0 3.1 "Lithuanian player wins German LNG terminal contract". Upstream Online | Latest oil and gas news. 2023-06-30. Retrieved 2023-09-16.
  4. 4.0 4.1 LNG Prime Staff (2023-01-17). "German FSRU terminal operator starts operations". LNG Prime. Retrieved 2023-02-02.
  5. German LNG Terminal in implementation phase with new shareholder structure / "Moving ahead at full speed", German LNG Terminal press release, Mar. 5, 2022
  6. RWE will hold 10% in planned Brunsbuettel LNG terminal, Reuters, Mar. 5, 2022
  7. 7.0 7.1 7.2 Ajsa Habibic (2023-01-19). "Höegh LNG and Germany firm up second 10-year FSRU charter deal". Offshore Energy. Retrieved 2023-02-01.
  8. Staff, LNG Prime (2023-10-20). "Germany's DET plans to launch two FSRU terminals in Q1 2024". LNG Prime. Retrieved 2024-02-06.
  9. Nikolaus J. Kurmayer, Germany signs initial contract to build first LNG terminal, Euractiv, Mar. 7, 2022
  10. 10.0 10.1 "Germany's Third LNG Import Terminal Receives First LNG Tanker". The Maritime Executive. Retrieved 2023-03-06.
  11. Phillip Kollenbroich, Lower Saxony wants support for four LNG terminals, Spiegel, Mar. 23, 2022
  12. 12.0 12.1 RWE. "Floating LNG terminal arrives at Brunsbüttel and increases German liquid gas import capacity". www.rwe.com. Retrieved 2023-01-27.
  13. LNG Prime Staff (2022-07-12). "Update: Gasunie expects German FSRU terminal to launch this year". LNG Prime. Retrieved 2022-07-20.
  14. Sanja Pekic (2022-07-20). "Construction of Brunsbüttel LNG terminal kicking off in September". Offshore Energy. Retrieved 2022-08-02.
  15. Stuart Elliott, Germany's Uniper mulls resuming work on Wilhelmshaven LNG import terminal, S&P Global, Feb. 28, 2022
  16. Naida Hakirevic Prevljak, Germany to break free from Russian gas with two LNG terminals, Offshore Energy, Feb. 28, 2022
  17. Sanja Pekic, Gasunie to start German LNG Terminal construction, Offshore Energy, Mar. 7, 2022
  18. FAQ-Liste LNG-Terminal in Deutschland, German Federal Ministry for Economy and Climate, Mar. 6, 2022
  19. RWE will hold 10% in planned Brunsbuettel LNG terminal, Reuters, Mar. 5, 2022
  20. Phillip Kollenbroich, Lower Saxony wants support for four LNG terminals, Spiegel, Mar. 23, 2022
  21. Vera Eckert, Shell signs deal to receive LNG at future German Brunsbuettel terminal, Reuters, Mar. 23, 2022
  22. Nikolaus J. Kurmayer, Germany signs initial contract to build first LNG terminal, Euractiv, Mar. 7, 2022
  23. "Zur Frage der störfallrechtlichen Zulässigkeit eines Terminals zur Lagerung und Regasifizierung von Flüssigerdgas (Liquefied Natural Gas = LNG) in Brunsbüttel", Deutsche Umwelthilfe, Apr. 15, 2019
  24. Construction of Brunsbüttel LNG terminal kicking off in September. Offshore Energy. July 20, 2022.
  25. GIIGNL. The LNG Industry: GIIGNL Annual Report 2023. July 14, 2023.
  26. "Lithuanian player wins German LNG terminal contract". Upstream Online | Latest oil and gas news. 2023-06-30. Retrieved 2023-09-16.
  27. gasworld (2024-01-10). "KN Energies manages German LNG terminals after rebrand". gasworld. Retrieved 2024-02-01.