German LNG Terminal and Shell have signed a Memorandum of Understanding (MoU) on LNG imports at the planned terminal at Brunsbüttel on the River Elbe.
Under the MoU, it was agreed that Shell will make a long-term commitment to offtake a substantial part of the Brunsbüttel terminal’s import capacity.
Both parties are currently working towards a binding agreement on the scope and duration of their partnership and hope to complete it as soon as possible, they said.
"The signed MoU with Shell, as well as the noticeable increase in interest from the market, demonstrates the importance of the import terminal in Brunsbüttel," said Dr Michael Kleemiß, German LNG Terminal Managing Director.
"We are looking forward to working with Shell as another partner in the coming years and will do everything in our power to drive planning and implementation forward rapidly. In doing so, the terminal will not only contribute to energy supply security in Germany, but also, in perspective, to the necessary climate-neutral energy supply," he said.
Fabian Ziegler, Shell’s German Managing Director, said: “I am delighted with our agreement with German LNG Terminal. It is a key step in contributing to security of supply in Germany in the near term, as well in more widely in Europe.
“LNG is the most flexible form of gas supply, which can adapt quickly to shifting trade patterns and our diverse and flexible global supply portfolio enables us to deliver and import LNG efficiently where it is needed the most.
“With LNG, we are helping to meet energy demand, as well as helping to limit CO2 emissions – a crucial part of the energy transition – as natural gas is the cleanest-burning hydrocarbon. And in future the terminal should be convertible to hydrogen or derivatives, such as ammonia.”
Multi-functional terminal
German LNG Terminal plans to build and operate a combined import and distribution terminal at Brunsbüttel. It will have an annual throughput capacity of 8 bill cu m of natural gas.
The terminal will consist of two LNG storage tanks of 165,000 cu m capacity each, a jetty with two berths for LNGCs of up to Q-Max size and smaller LNGCs, as well as facilities for unloading and loading the ships, regasification facilities and subsequent injection into the German high-pressure natural gas grid, as well as facilities for loading into tanker trucks, rail tank cars and LNG bunker ships for distribution.
The future import of hydrogen or hydrogen derivatives will also be taken into account from the outset in order to prepare suitable plant components for the potential import of alternative energy sources.
Earlier this month, the Kreditanstalt für Wiederaufbau (KfW) on behalf of the German government, Dutch Gasunie LNG Holding and RWE signed a MoU to jointly promote the terminal’s construction and operation.
The terminal will be operated by Gasunie.
