How does the LNG infrastructure in Germany differ from other European countries?
Dr. Peter Röttgen: Unlike Spain, Italy and the Netherlands, for example, Germany had no infrastructure for importing liquefied natural gas before December 2022. We therefore need to develop several terminals, grid connections, capacity marketing and the general operational basis in the shortest possible time.
What role does LNG play in the German energy transition concept?
Dr. Peter Röttgen: With the phase-out of coal-fired power generation and nuclear energy, natural gas is essential as long as renewable energy in the form of electricity and alternative gases does not yet represent the full supply. Our task is to contribute to security of supply and price stability for industry, commerce and households in Germany and Europe. LNG imports also stabilize the economy and lay the foundations for the transformation to climate neutrality by 2045 at the latest.
What technical challenges were faced during the construction of the German LNG terminals and how were they solved?
Dr. Peter Röttgen: Very differently at our respective locations, as the local conditions and the FSRUs used are very individual. In principle, however, everyone involved in Wilhelmshaven I and II, Brunsbüttel and Stade - i.e. at DET's state-owned FSRU terminals - can claim to have done real pioneering work. Because before December 2022 - as already mentioned - there were no LNG terminals in Germany. As a result, the comprehensive expertise first had to be built up. DET now has a very professional, international team of LNG experts who support the terminal construction commissioned from third parties. In general, these are projects that have to be implemented in accordance with international standards. The main challenge is the urgency required while complying with strict approval requirements, some of which only become apparent during development.
What types of valves or which automation technologies are used in an LNG terminal?
Dr. Peter Röttgen: We are talking about so-called critical infrastructure here. We are therefore unable to provide any information on the technical equipment.
Which companies are significantly involved in the development of LNG infrastructure in Germany?
Dr. Peter Röttgen: Our partners Uniper, RWE, Tree Energy Solutions (TES), Engie and Hanseatic Energy Hub (HEH) as well as the port companies N-Ports and Brunsbüttel Ports were or are significantly involved in the construction of DET's floating LNG terminals. We have leased the regasification vessels themselves from the shipping companies Höegh, Energos and Excelerate. The grid connection work carried out by Open Grid Europe (OGE) and Gasunie Deutschland as well as other connected gas transport companies is also significant. Equally important is the large number of construction and supply companies, experts, approval specialists and, in particular, those who ensure occupational health and safety. We are aware that we also have a great deal of work on the official side.
How could the increasing demand for LNG in Germany affect the global energy market?
Dr. Peter Röttgen: Even before the crisis, the international LNG market was slowly developing towards greater maturity, which has now received a particular boost as it has a high degree of flexibility and diversification of supply sources to offer. The increased demand from Germany and Europe is helping to ensure that liquefaction plants are utilized to capacity or even newly developed. The availability of LNG currently appears to be sufficient to cover the market, but this is heavily dependent on how competing purchases develop, for example as a result of the Chinese economy picking up, whether new supply restrictions arise due to the possible loss of the last gas volumes from Russia or whether harsher winters set in. The price will then determine whether LNG is supplied to Asia or Europe, for example.
Where is the LNG sourced from? How much LNG was supplied last year?
Dr. Peter Röttgen: According to the latest figures from the BDEW, Germany imported around 70 billion kilowatt hours of natural gas via LNG terminals in 2023. According to calculations by the Federal Network Agency, this corresponds to seven percent of all German gas imports. Just under 60 billion kilowatt hours via the DET terminals alone. Most of the LNG that arrives at DET comes from the USA.
What capacities are expected for the finished terminals from 2026?
Dr. Peter Röttgen: One terminal in Wilhelmshaven and one in Brunsbüttel are currently in operation. We expect the Stade terminal and the second terminal in Wilhelmshaven to go into operation this year. This will enable us to achieve our planned capacities for the four state-owned FSRUs of around 17 billion cubic meters of gas per year. In purely mathematical terms, our terminals could supply almost half of all private households in Germany with gas. Which is why we should still be cautious: after all, every industry places new demands on the technology. That's why we shouldn't try to invent the perfect solution now. An MTP that can do everything in the end but is highly complex and expensive will not help anyone.