Germany's economy ministry has instructed state-owned LNG terminal operator Deutsche Energy Terminal (DET) to reject Russian LNG cargoes, according to the UK’s Financial Times..
The FT quoted a letter dated 6th November sent by the ministry to DET that told the terminal operator "not to accept any deliveries of Russian LNG."
It came after the company reportedly informed Berlin that its import facility in Brunsbuttel was set to receive a Russian cargo.
The ministry said the instruction was given in order to protect Germany's "overriding public interests."
In comments to S&P Global Commodity Insights, a spokesperson said: "In general, it is correct that Germany does not import Russian gas and it is also clear to the ministry that this must not happen via German LNG terminals."
There are no EU-wide blanket sanctions against the import of Russian LNG, with a number of EU countries = including France, Spain, Belgium, and the Netherlands = continuing to buy cargoes.
However, the German economy ministry already made the country's position on this matter clear in a pledge made in January, 2023 shortly after operations started at the country’s first floating storage and regasification unit at Wilhelmshaven in December, 2022.
In written answers to parliamentary questions dated early that year, the ministry said the German government was against the purchase of Russian LNG and would take measures to ensure companies avoided such cargoes.
"The federal government does not support the procurement of Russian LNG. The government has communicated to companies that it will take appropriate measures where possible to exclude purchases of Russian LNG," it said.
Germany currently has four operational FSRUs - state-backed terminals at Wilhelmshaven (‘Hoegh Esperanza’) and Brunsbuttel (‘Hoegh Gannet’), and two at the privately-owned Mukran terminal (‘Neptune’ and ‘Energos Power’).
There are plans for two more FSRUs - one at Stade (‘Energos Force’) and a second at Wilhelmshaven (‘Excelsior’) - to enter operation by year-end to bring the fleet to six.
Even if Germany itself prevents Russian LNG cargoes from discharging at its terminals, regasified Russian LNG can still flow into Germany via terminals in other countries, such as France, Belgium, and the Netherlands.
German state-owned trader SEFE had a long-term import contract for Russian LNG deliveries from the Yamal LNG plant that dated back to 2012 when it was part of the Gazprom group and traded as Gazprom Germania.
"This old contract gives rise to purchase obligations for SEFE, according to which contract volumes must be paid for even if they are not purchased," the ministry said.
"If the purchase does not take place, Russia could therefore sell the LNG on the world market and thus generate income for the same LNG quantities a second time," it said.
The ministry also said it did not expect pipeline deliveries from Russia to resume "in the foreseeable future."
