German Government, Energy Companies Sign LNG Deal

Germany’s Ministry for Economic Affairs and Climate Action has concluded a memorandum of understanding (MoU) with energy giants Uniper, RWE and EnBW/VNG on the liquid natural gas (LNG) terminals under construction in Brunsbüttel and Wilhelmshaven.

Uniper and RWE will temporarily run the Floating Storage and Regasification Units, or FSRUs, as they’re also known. All three companies have pledged to organize sufficient supplies of LNG so that the terminals can run at their full annual capacity of 12.5 billion cubic meters.

The terminals are to become operational between the end of this year and the start of 2023, as Germany seeks to reduce imports of Russian natural gas and other energy sources. They will allow Germany to bring in gas from countries to which no direct pipelines exist.

“By importing liquid natural gas we lower our dependency on Russian pipeline gas,” said Economics Minister Robert Habeck when the deal was announced. “The MoU offers the necessary security that the FSRUs will be used at full capacity in the coming two winters and will thus make a maximum contribution to energy supply security in Germany and Europe.”