War in Ukraine
Germany to spend big on floating LNG terminals as it cuts Russian gas imports
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BERLIN • Germany has released nearly €3 billion (S$4.4 billion) to acquire floating liquefied natural gas (LNG) terminals as it seeks to move away from dependence on Russian gas.
"Dependence on Russian energy imports must be reduced quickly and sustainably," tweeted Finance Minister Christian Lindner on Friday. "Floating LNG terminals make an important contribution to this, for which we must provide funding," he added.
A total of €2.94 billion has been made available for the lease of these huge LNG carriers, the finance ministry said. Europe, and Germany in particular, is counting on LNG to reduce its dependence on Russian imports after Moscow's invasion of Ukraine.
Some 20 countries export LNG which is transported by ship, and whose three largest suppliers are Australia, Qatar and the United States. Liquefied to take up less space, the LNG is regasified on arrival for distribution. The mobile terminals, known as floating storage regasification units, allow for converting LNG carried by a tanker into gas and injecting it into the pipeline network.
European countries recently announced expanded efforts to wean themselves off Russian gas. Russia, a major fossil fuel producer, accounted for around 45 per cent of the European Union's gas imports last year, but the bloc is under pressure to impose sanctions on oil and gas imports from Moscow.
In recent years, Germany has imported an average of 55 per cent of its gas from Russia via onshore pipelines. This share was reduced to 40 per cent by the end of the first quarter this year, in favour of higher imports from the Netherlands, Norway and of LNG, according to the economy ministry.
But unlike several other European countries, Germany does not have an onshore terminal to process imported liquefied gas. For the time being, it relies on terminals in other EU countries, which limits its import capacity.
According to German media reports, the government is considering, in conjunction with private partners, the rental of three or four ships that would be positioned in North Sea or Baltic ports for this purpose. Some of these facilities could be in operation by next winter.
AGENCE FRANCE-PRESSE
