Frankfurt — Shell and German LNG Terminal GmbH on Wednesday said Shell has committed to booking a substantial part of a yet-to-be built landing terminal for liquefied natural gas (LNG) at the North Sea port of Brunsbuettel, as companies strive to lower their dependency on Russian pipeline gas.
A joint statement said the two parties have signed a memorandum of understanding on Shell’s import and distribution through the Gasunie-operated terminal> that would have an annual capacity of 8 billion cubic metres (bcm) and should start operating in 2026 at the latest.
“The signed MoU with Shell as well as the noticeable increase in interest from the market demonstrates the importance of the import terminal in Brunsbuettel,” said Michael Kleemiss, Managing Director of German LNG Terminal.
Gasunie, utility RWE and German state lender KfW banded together earlier this month to redraw the terminal’s shareholder structure, combining finance requirements and operational expertise.
They said they will aim to allow the terminal to function on gas first, but strive for a conversion to carbon-free hydrogen in the long term.
Germany has no LNG import terminals to date but in the wake of Russia’s invasion of Ukraine turned around its energy policy to try and replace east-west pipeline flows from Russia with other geographic sources and gas arrivals on board LNG ships.
Germany last year consumed 100 bcm of gas while importing 142 bcm due to its role as a distribution hub in continental Europe.
The LNG Terminal company previously was advanced by Gasunie with tank storage firm Vopak and Marquard & Bahls’ Oiltanking, but those two exited in the course of the new deal with KfW.
RWE last Friday spelled out future plans for its engagement at the LNG site which after its LNG function will expressly stretch to hydrogen or hydrogen derivatives such as ammonia.
- Reuter (Reporting by Vera Eckert, editing by Elaine Hardcastle)
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