At least 6.56 billion euros will be needed instead of the 3.5 billion they originally estimated
The cost of the liquefied natural gas (LNG) terminals will be almost twice as much as originally estimated, while it cannot be ruled out that additional funds will be needed in the future.
The federal government had estimated that the acquisition and maintenance of the floating LNG terminals would cost 3.5 billion euros, however, according to a response from the finance ministry to Der Spiegel magazine, at least 6.56 billion would be needed from the budget, without it is impossible for the final amount to increase further, as “there are likely to be additional needs that cannot be determined at this time.”
2.94 billion euros had been entered in the 2022 budget, but the Federal Parliament has already approved the additional funds. “Due to the high demand, the fastest possible chartering of floating storage and regasification units (FSRUs) was an absolute priority at this stage,” the finance ministry says, and clarifies that one must calculate funds for operational costs and onshore infrastructure measures. In addition, as noted in Bundestag Budget Committee documents, two of the stations were eventually to be chartered for 15 years instead of 10 years as originally planned.
In the meantime, the government plans to build even more terminals. The Ministry of Economy requested the approval of six new projects, stressing that without a reliable supply of natural gas, a significant part of the industry would be at risk if alternatives were not secured.
The increase in the cost of the terminals provoked a backlash from the opposition. The left-wing representative of the Bundestag Budget Committee, Viktor Perli, told Spiegel that “with no alternative use of LNG, the governing coalition has become vulnerable to blackmail and now has to pay billions more” and spoke of billions in profits and “redistribution to above and at the expense of the customers” for the companies involved in the operation of the terminals.
But even on the government’s side, the Greens’ representative on the Budget Committee Sven-Christian Kindler stressed that “more clarity is needed on the costs and risks of LNG”.
RES-EMP
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