Economy

Germany: “Operation detoxification” from Moscow – LNG instead of Russian gas

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Until the end of 2021, Germany’s energy planning did not provide for investment in liquefied natural gas (LNG). To date, there is not a single LNG terminal in the country. However, after the Russian invasion of Ukraine, the Germans began to supply – at increased costs, of course – larger quantities of liquefied natural gas from Norway, the United States, as well as neighboring countries, which already have ports with LNG terminals. These are mainly Rotterdam in the Netherlands and Zeebrugge in Belgium.

The first terminal in the North Sea

These markets have helped dramatically reduce dependence on Russian gas imports from 55% to 35% in just a few months. Now Germany wants to take the next step and restore old plans for the construction of the first LNG terminal in the North Sea, specifically in the port of Willemshaven. The necessary urban planning actions have already begun and in a few days the planned public consultation will begin, but it will not be completed before June 5. If there are no lawsuits and complications, the terminal will be built by the end of 2022 and will most likely start operating in early 2023.

The truth is that under current legislation licensing takes time. That’s why Social Democrat Chancellor Olaf Solz’s federal government is drafting new legislation to speed up the process. “This legislation will be a good basis for the next steps,” said Lower Saxony Energy Minister Olaf Lis. “We have to prove that we are able to get rid of Russian energy.” The use of floating LNG terminals in the coming months is being considered as a transitional solution. The mayor of Hamburg, Peter Chenzer, has already stated in the Sunday edition of the newspaper Die Welt that he plans to “install” a terminal in the port of Hamburg by the end of 2022 with the prospect of storing up to eight billion cubic meters per year. Similar plans for the Brunsbittel area in the North Sea have been announced by the Prime Minister of the state of Schleswig-Holstein, Daniel Ginder.

Investment in hydrogen as well

The German News Agency (DPA) reveals a report by the Ministry of Economy and Climate Change on energy security in Germany, which states that “by the end of the summer it is realistic to end dependence on Russian imports of raw materials.” In fact, it is estimated that Berlin is now supporting European-level measures to impose an energy embargo on Moscow, reconsidering its previous cautious stance.

In a next step, the German government is focusing on the production and utilization of hydrogen, which is considered “fuel of the future”. According to the economic review Handelsblatt, German Chancellor Olaf Soltz discussed the possibility of cooperating with Japan on hydrogen production during his visit to Tokyo on Thursday. That was the reason why, shortly before leaving for Berlin, he visited a pilot plant for the production of hydrogen in the city of Kawasaki, which processes liquefied natural gas imported from faraway Brunei. At the port of Kobe, the Japanese have already installed their first LNG terminal, importing liquefied natural gas from Australia.

DW – Giannis Papadimitriou

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