LNG

The German Association of Transmission System Operators (FNB Gas) said the timetable has been set up for having a shared natural gas pipeline system with hydrogen in Germany's huge pipeline network.

The TSOs in Germany and regulated operators of gas and hydrogen transport networks are obliged by law to set up and operate the network in an equal and non-discriminatory manner.

“In order to fulfil this shared responsibility, the network operators have commissioned FNB Gas as a service provider to fulfil changeover legal tasks,” the FNB said.

The scenario framework for the first integrated gas and hydrogen network development plan is to be handed over to Germany’s Federal Network Agency on June 30, 2024.

The newly established coordination office for the integrated network development planning for gas and hydrogen (KO.NEP) has now officially begun work.

The task of the KO.NEP is to coordinate the future development of the gas and hydrogen system and to submit them to the Federal Network Agency (BNetzA) every two years.

Central contact

“It acts as the central contact for authorities and market participants on network development planning issues in the areas of gas and hydrogen and is also responsible for the creation and operation of the legally required databases for the gas and hydrogen network,” the statement added.

FNB Gas Managing Director Barbara Fischer said the body had already gained valuable experience in coordinating gas network development planning.

“We have been supporting the development of the hydrogen core network with great commitment for over a year,” explained Fischer.

“We will bring this knowledge about the processes and content of network planning in both areas into the new coordination office,” she added.

“We have put together a competent team to carry out the coordination office’s tasks,” Fischer stated.

FNB Gas has also previously outlined the future role of LNG import facilities at the coastal locations of the North Sea port of Wilhelmshaven, at Brunsbüttel on the Elbe and at the Baltic ports of Lubmin and Mukran.

Members

FNB Gas, which comes from the German words Fernleitungsnetzbetreiber, groups a dozen companies overseeing 40,000 kilometres (25,000 miles) of natural gas pipeline flows and other infrastructure.

Members of FNB Gas are the following TSOs: bayernets GmbH, Ferngas Netzgesellschaft GmbH, Fluxys TENP GmbH, Gascade Gastransport GmbH, Gastransport Nord GmbH, Gasunie Deutschland Transport Services GmbH, GRTgaz Deutschland GmbH, Nowega GmbH, ONTRAS Gastransport GmbH, Open Grid Europe GmbH, Terranets BW GmbH and Thyssengas GmbH.

The German Association of Transmission System Operators (FNB Gas) said that had been a “significant easing of the supply situation” and Germany was looking forward to natural gas energy security in the future.

The German Association of Transmission System Operators (FNB Gas) said that members were partially disappointed with the upcoming adoption of the amendment to the Energy Industry Act (EnWG) in Germany’s Bundestag to create the legal framework for the financing and integration of development planning for the nation’s natural gas and hydrogen network.

The German Association of Transmission System Operators (FNB Gas) said that members have decided that the financing model for the hydrogen core network to run alongside natural gas must be suitable for investment by mainstream capital markets.

FNB Gas wants the core network to have a balanced risk-reward ratio and “state protection at all times and for all core network operators” to increase legal certainty.

FNB Gas Managing Director Barbara Fischer emphasized the need for the financing model to be suitable for the capital markets.

Her statement came as the “expert hearing” took placein the Committee for Climate Protection and Energy in the German Bundestag in Berlin on the draft law to amend the Energy Industry Act with regulations for the financing of the core network.

“The transmission system operators (TSOs) agree with the federal government that the hydrogen infrastructure in Germany should be financed privately,” explained Fischer.

Financing model

“To this end, the draft law presents a fundamentally functional financing model, with which the necessary private capital can only be mobilized if investors consider it to be suitable for the capital market and the investment conditions are at least no worse than for investments in other infrastructure areas such as electricity,” she added.

“There is currently a higher interest rate, no run-up risk and no deductible risk,” stated Fischer.

“In order not to jeopardize the success of core network planning to date, from an investor perspective, a few but crucial changes to the draft law are necessary. The main aim is to improve risk assessment for investors,” Fischer declared.

FNB Gas also noted that the network operators' “conditioned tender obligation” must be supplemented by an unconditional tender right of the network operators in the event of failure of the market ramp-up. 

“A contract under public law would increase legal certainty,” said FNB Gas.

Capacity reservations

FNB Gas said earlier in February that members were seeking more capacity reservations and capacity expansion for pipelines as well as more sector benefits from imported and regasified LNG and from power plants in accordance with the new gas industry framework for Germany.

According to the German federal government's draft law, the TSOs and the regulated operators of hydrogen transport networks must create the framework for the first integrated network for gas and hydrogen by June 30, 2024.

The FNB plan focuses on the conversion of 60 percent of existing gas pipelines to carry hydrogen, which is additionally burdened by being more explosive than natural gas.

FNB has also previously outlined the future role of LNG import facilities at the coastal locations of the North Sea port of Wilhelmshaven, at Brunsbüttel on the Elbe and at the Baltic Port of Lubmin.

FNB Gas, which comes from the German words Fernleitungsnetzbetreiber, groups a dozen companies overseeing 40,000 kilometres (25,000 miles) of natural gas pipeline flows and other infrastructure.

The TSOs had earlier presented their draft gas network development plan through 2032 and which reflected the far-reaching changes in Germany's energy supply now that Russian pipeline gas deliveries have ended.

Gas demand issues

FNB Gas, which is based in Berlin and was founded in 2012, believes that German natural gas consumption was expected to fall by at least 20 percent by 2032.

Germany first presented its hydrogen strategy in mid-2020 under the Government of Chancellor Angela Merkel.

The strategy was continued by the Government coalition after Merkel of the Social Democrats (SPD), the Green Party and the Free Democrats.

The three parties agreed to present an ambitious update to the strategy to make the country a leading market for hydrogen technologies by 2030.

Members of FNB Gas are the following companies: bayernets GmbH, Ferngas Netzgesellschaft GmbH, Fluxys TENP GmbH, Gascade Gastransport GmbH, Gastransport Nord GmbH, Gasunie Deutschland Transport Services GmbH, GRTgaz Deutschland GmbH, Nowega GmbH, ONTRAS Gastransport GmbH, Open Grid Europe GmbH, terranets bw GmbH and Thyssengas GmbH.

The German Association of Transmission System Operators (FNB Gas) said that members were seeking more capacity reservations and capacity expansion for pipelines as well as more sector benefits from imported and regasified LNG and from power plants in accordance with the new gas industry framework for Germany.

Germany's hydrogen obsession, which has made liquefied natural gas suppliers uneasy and prevented the Germans securing long-term LNG supply contracts, has been brought into focus by a German report saying that hydrogen demand would fall well short of the baseline the country is assuming in its plans to extend its gas network to carry the fuel.                  

The German gas transmission system operators (TSOs) completed and commissioned a total of 17 projects in 2022, though five other expansion projects were dropped in the course of network modelling for the 2022-2032 Gas Network Development Plan (NDP).

The German Association of Transmission System Operators (FNB Gas), has outlined the future role of liquefied natural gas facilities at the coastal locations of the North Sea port of Wilhelmshaven, at Brunsbüttel on the Elbe River and at the Baltic Port of Lubmin.

Dec 16 (LNGJ) - FNB Gas, the German Association of Gas Transmission System Operators, said its members started the consultation process on December 16 for the Gas Network Development Plan 2022-2032. “The new LNG-plus supply security variants take into account the far-reaching changes in the energy supply situation,” said FNB Gas.

   “Measures to provide the necessary transport capacities are being implemented at full speed by the TSOs. The first grid connections for LNG terminals will be completed by the end of 2022,” it added. “The TSOs are working to adapt the transmission system to the changed geopolitical and energy industry framework conditions as quickly as possible and to continue to ensure safe gas transportation,” stated FNB Gas.

The German Association of Gas Transmission System Operators (FNB Gas) said its members had been working flat out to provide initial answers to the new economic conditions for natural gas, including the introduction of LNG imports after the Russian invasion of Ukraine.