LNG

Gasunie, one of the main LNG importers in the Netherlands with global storage giant Vopak, said the company’s EnergyStock subsidiary has issued a call for “expressions of interest” in long-term flexibility Dutch gas storages services.

The Gasunie unit’s main facility is located in the north of the Netherlands and connected to the Dutch gas transmission network at the heart of the Dutch Title Transfer Facility (TTF) benchmark gas market.

“In this turbulent energy market, EnergyStock has experienced scarcity of gas storage services and a market demand for long-term contracts,” the company explained.

“In order to satisfy this demand and give market parties the opportunity to establish certainty in uncertain times, EnergyStock will offer long-term flexibility services for a duration of five to 10 years, with effect from Storage Year 2025,” the statement from Gasunie explained.

Non-binding phase

“As a first step, EnergyStock invites interested market parties to formulate a non-binding ‘Expression of Interest’ for long-term flexibility services,” said Gasunie.

“This process starts on July 2 and interested parties are asked to express their interest no later than 31 July 2024,” it added.

In addition to long-term services, EnergyStock stated that it would continue to offer short-term flexibility services, short lead time rights and interruptible services.

The EnergyStock natural gas is stored in six salt caverns at a depth between 1,000 metres to 1,500 metres and whose gas volume ranges from 5,000 megawatt to 10,000 MWh.

The technical lay-out consists of two tubings per cavern instead of one tubing that results in an exceptionally high injection and withdrawal rates.

Gas is injected into the caverns using electric compressors and is withdrawn using equipment for heating, pressure reduction and gas drying.

“Injection and withdrawal capacity is available 24/7 throughout the year,” said Gasunie.

The facility has high reliability with an efficient short period of yearly maintenance that is principally planned during summer shoulder months.

Supply balancing

“Gasunie aims to facilitate the continuous balancing of supply for its customers and demand of natural gas,” said Gasunie in its statement.

“They achieve this by offering fast-cycle gas storage services using their unique natural gas storage in the northern part of the Netherlands,” it added.

Gasunie’s network is one of the largest high-pressure pipeline networks in Europe, comprising over 17,000 kilometres (10,650 miles) of pipelines in the Netherlands and northern Germany.

The Dutch state-backed utility also has LNG import facility stakes in the Gate terminal in Rotterdam and the Eemshaven import hub in Groningen,

The utility is additionally involved in the German natural gas market and in developing the onshore LNG terminal in Brunsbüttel on the Elbe.

EnergyStock aims to guarantee a transparent process wherein parties have a level playing field.

“We decided to auction our short-term flexibility services for Storage Year 2025 in the fourth quarter of 2024,” said the company.

“Details of the auction will be shared prior to the auction. The capacity and working gas volume to be auctioned will depend on the progress made with long-term agreements,” it added.

Deutsche Regas GmbH, the operator of the floating liquefied natural gas import terminal at the Baltic Sea port of Lubmin, is now making more progress on meeting operational standards at the company’s second German Baltic regasification terminal, located at the port of Mukran on Germany’s largest island of Rügen.

The floating storage and regasification unit (FSRU) “Energos Power” docked at Mukran on the tourist island of Rügen on February 24.

The second German Baltic Sea received the emission control and water law permits on April 10 for the operation of the terminal under the jurisdiction of the state of Mecklenburg-Vorpommern.

Targets

“We have now been able to install all of the currently planned expansion stages for further noise-reducing measures on the ‘FSRU Energos Power’ vessel,” explained Deutsche Regas.

“They make a noticeable contribution to further reducing noise emissions from the FSRU,” stated Deutsche Regas.

The company noted that an independent assessor's office continues to measure and ongoing noise emissions in the area of the Mukran industrial port.

“These measurements are determining the comprehensive effectiveness of the noise reduction,” added Deutsche Regas.

“They also confirm that all legal limit values ​​were adhered to at all times and throughout the entire trial operation,” the company said.

“By installing the noise-reducing measures, we would like to keep possible exposure for all residents, for all our neighbours and our neighbours in the area of ​​the Mukran industrial port as low as possible,” stated Deutsche Regas.

Regas vessel

The “Energos Power” is 300 metres in length and is part of a plan to provide adequate natural gas to replace pipeline gas previously received from Russia’s Gazprom.

The FSRU “Energos Power” with 174,000 cubic metres capacity had formerly been called the “Transgas Power”.

The Mukran floating LNG operations include a 50 kilometres (31 miles) pipeline that will transport the regasified LNG to the mainland and into the German gas grid.

Deutsche ReGas has cooperated on the project with German Transmission System Operator, Gascade GmbH.

Gascade has been overseeing connections to gas grids in the rest of Germany and the European Union via the North European Natural Gas Pipeline (NEL), the Ostsee-Pipeline-Anbindungsleitung (OPAL) and the European Gas Pipeline Link (EUGAL).

The energy terminal will feed up to 13.5 billion cubic metres of gas annually into the EUGAL/OPAL and NEL gas pipeline network, the most important gas supply lines in eastern Germany.

The past 12 months have been the most turbulent and testing year ever for the energy industry, in particular the natural gas sector and the markets, according to the International Gas Union President Li Yalan.

The IGU President also noted in the December issue of the IGU’s monthly publication that there had also been hard times in many other sectors of the economy and for populations in general.

“The global energy crisis continues and energy markets are rocked by conflict, high and volatile prices, low supply and demand destruction,” stated Li, who was nominated as head of the IGU from the Beijing Gas Group.

“Energy consumers are directly exposed to the energy crisis, with people struggling to pay their bills due to high energy cost,” she said.

“Many had to turn down their heat this winter, several regions have had to endure power shortages and others are walking through darker streets or working remotely to conserve energy,” she added.

Coal use

“Many factories were forced to stop producing, or close down faced with unaffordable energy and deficiency in raw materials. To navigate through the crisis, many countries had to prioritize energy security over energy transition as a result we see a growing number of countries adding coal-power capacity, and increased use of coal - the
most emitting fossil fuel - all across the world, rich and developing alike,” she explained.

The IGU President emphasized that there was an upside as there were positive signals that investments were increasing for natural gas projects and for renewables and that these trends needed to continue for the global energy balance to be restored.

“As we wrap up this year and reflect on its many stresses, I hope that a key lesson that can be learned from it is that energy systems cannot be changed overnight,” noted Li.

“In the recent years leading up to this crisis, energy security became forgotten and long-term planning for secure and reliable supply was seemingly forgotten with it,” she explained.

“This crisis reminds us that energy security should be brought back in balance with economic and environmental policy considerations,” Li declared.

LI added that it was imperative that the world arrives at a “real plan” for an achievable transition toward a clean, secure and affordable energy system.

“Most importantly, it will require an honest dialogue between all key players, including the gas industry,” she said.

Norwegian energy company Equinor, whose Hammerfest LNG plant comes back on stream in mid-May 2022, said “unprecedented” European natural gas prices in the second half resulted in record high annual and fourth-quarter adjusted earnings after gas output was boosted.

Gazprom, the supplier of pipeline natural gas to customers from Western Europe to China as well as the Russian Federation and former Soviet states, said record gross earnings were forecast for 2021 and it was also increasing funds for managing risk in the volatile market.

French utility Engie, the parent company of France's network operator and LNG terminals owner, said its US$8.6 billion joint bid with a Canadian fund won the competitive tender conducted by Brazilian energy company Petrobras for the sale of the South American nation’s largest gas transmission network.

Anti-trust investigations by the European Commission into LNG agreements between Qatar and European energy companies has led Qatar Petroleum to say it gave the “highest importance” to compliance around the world and would cooperate with Brussels.