With five liquefied natural gas import terminals in operation, France has now assumed the role of a leading regasified LNG supplier to the European Union, especially Germany and other neighbours, as gas from Russia’s Gazprom has been easily replaced with increasing gas flows from West to East in the EU.
The French port of Le Havre has again become a liquefied natural gas importation point for the first time since the 1980s as commissioning activities were starting for the floating storage and regasification unit (FSRU) “Cape Ann” after its safe arrival in the face of protests.
GRTgaz, the French gas grid company with three liquefied natural gas import terminals under its control, began transporting pipeline gas to Germany after reversing the normal flow on the only link between the two nations and since then European Union day-ahead spot gas prices have dropped, though other influences have been at play.
GRTgaz, the French natural gas transmission company with three liquefied natural gas import terminals under its control, said LNG would help it through the winter season and was working on reversing flows to Germany following the cut-off of pipeline supplies from Russia to the European Union.
France is moving ahead with its fifth LNG import terminal with a floating storage and regasification unit (FSRU) being deployed at the port of Le Havre on the northeast coast of Normandy where there had previously been an onshore facility that handled deliveries of LNG from Algeria for Gaz de France.
GRTgaz, the French natural gas transmission company, said LNG terminal subsidiary Elengy received 176 cargoes in 2021 at the three terminals in Western and Southern France as it gave an overview of last year’s gas transportation and storage activities.
TotalEnergies Marine Fuels, the French major’s bunkering unit, has forecast that the liquefied natural gas market would expand over the next four years, reaching 10 million tonnes per annum of bunker volumes by 2025.
The TotalEnergies bunkering subsidiary came to the conclusion in a 40-page report on the maritime fuel market that offers shippping operators and owners advice on how to navigate the energy transition.
TotalEnergies Marine Fuels looks at the key drivers shaping the move to the decarbonization of shipping and timelines motivating the transition as well as required investments.
“Through our insights, knowledge and thinking, we hope to help develop a greater understanding of the key areas and considerations ship owners and operators will need to address, as they move towards tomorrow’s marine fuels landscape,” declared Jérôme Leprince-Ringuet, Vice-President Marine Fuels at TotalEnergies.
TotalEnergies also forecasts the LNG bunkering market would represent 10 percent of the entire bunkering market by 2030.
The Paris-based company noted that there were about 245 LNG-powered ships currently in operation and the market is expanding, given the number of newbuild orders for LNG-powered vessel.
Bunkering assets
The report added that there were now 26 LNG bunkering vessels in operation globally and the fleet would grow to 43 units offering an aggregated capacity of between 7 MTPA to 8 MTPA by early 2024 and up to 10 MTPA by 2025.
TotalEnergies deployed its first chartered LNG bunkering vessel in 2020. The “Gas Agility” has 18,600 cubic metres capacity and offers services around the Dutch port of Rotterdam.
The French company’s bunkering business partner is the Japanese shipping line, Mitsui OSK Lines.
The sister ship, the “Gas Vitality”, will be based at the Port of Marseille-Fos on the Mediterranean to serve the Marseille-based containerships operator CMA CGM and vessels from MSC Cruises calling at the French port.
The “Gas Vitality” was launched by the Chinese shipyard of Hudong-Zhonghua Shipbuilding at the end of April 2021.
TotalEnergies shares the use of a third bunker vessel in the Asian port of Singapore, where the company won a licence for LNG bunkering in February 2021.
The TotalEnergies bunkering licence from the Maritime and Port Authority of Singapore allows the supply of LNG in the Port from 2022.
Elengy, the French LNG terminal operator and its subsidiary Fosmax LNG, are launching an open season for capacity subscriptions at the Fos Cavaou facility, located in the Mediterranean west of the Port of Marseilles.
Three of France’s LNG terminals, Fos Tonkin, Fos Cavaou in the Mediterranean and Montoir-de-Bretagne on the Atlantic Coast, are operated by Elengy within the Engie Group and as subsidiaries of GRTgaz, France’s gas network operator.
Fosmax LNG is calling for capacity subscriptions at the Fos Cavaou terminal during 2021.
The Fos Cavaou facility has been operating since 2010 and has three storage tanks with combined capacity of 330,000 cubic metres.
France has a total of four terminals and the most modern facility opened in 2016 at Dunkirk on the Channel Coast and has capacity of 570,000 cubic metres in three tanks.
Elengy explained that Fos Cavaou’s operations are currently guaranteed through to March 2030 by ongoing subscriptions and contracts totaling 87 terawatt hours per year of capacity.
“Fos Cavaou, at the crossroads of maritime routes and major gas infrastructures, offers a privileged access to all European gas markets and the small-scale potential in a key Mediterranean location,” said Elengy.
“The ‘Open Season Fos Cavaou 2021’ is initiated in response to a high level of market interest expressed over the past few months, and aims to make available additional primary capacity achieved through technical and regulatory de-bottlenecking, as well as capacity extensions beyond 2030,” explained Elengy
The windows of interest offered include 1.0 billion cubic metres per annum from January 2022, 2.5 Bcm per annum from January 2024 and 4.5 Bcm per annum from April 2030 until 2045 or longer.
The open season will have two phases. Firstly, there will be a non-binding call for interest, which is expected to last for three months to precisely assess market needs.
Secondly, there will be a binding Open Season, which is expected during the second half of 2021 to perform a market test based on binding commitments of the parties.
“Registration for ‘Open Season Fos Cavaou 2021’ is now open, and shippers wishing to register are invited to complete and sign the Confidentiality Agreement, provided on the Fosmax LNG website, and send a digital copy by email return,” explained Elengy.
GRTgaz, the French natural gas grid operator and parent company of the LNG terminals operator, said the nation was well prepared with full storage to meet gas demands during the coming winter, provided minimum LNG supplies are maintained in the event of an exceptional cold spell.
HAM Group, the Spanish LNG fuel provider and filing station developer, has signed a truck-loading agreement with a French truck-loading import terminal near Marseilles because of expected unavailability in Spain through gas network company and LNG terminal operator Enagás.