LNG

Dec 21 (LNGJ) – Four cargoes are heading for Belgium and Germany in the next week from Russia, Qatar, Angola and the US state of Louisiana. The carrier “Eduard Toll” with 177,000 cubic metres capacity is expected to arrive at the Belgian LNG import terminal at Zeebrugge with a Russian cargo. The shipment was lifted on December 19 from the Yamal plant near the port of Sabetta in northern Siberia, according to shipping data. The Qatari carrier “Al Khor” with 135,295 cubic metres capacity is scheduled to deliver a cargo to Zeebrugge on December 27, lifted from Ras Laffan in the Gulf on December 2.

   The other cargoes are heading for Germany in the next week. The “Sonangol Sambizanga” with capacity of 160,500 cubic metres is scheduled to discharge a cargo from Angola on December 24 at the floating terminal in the North Sea port of Wilhelmshaven. The shipment was lifted on December 8 from the southwest African nation’s export plant at Soyo. Another vessel heading for Germany is the “Marvel Falcon” with 174,000 cubic metres capacity. The ship is scheduled to berth with a US cargo on December 25 at the Brunsbüttel terminal on the Elbe. The volumes were loaded on December 10 at the Cameron LNG plant in Louisiana.

Uniper, the German utility almost brought down by the stoppage of pipeline natural gas supplies from Russia’s Gazprom and which is now importing LNG at Germany’s North Sea port of Wilhelmshaven, has suffered another setback by having to pay €550 ($602M) to a European LNG player after an arbitration ruling.

The Düsseldorf-based company, which had to receive a stabilization package from the German Federal government in 2022 to survive and reported net losses of €19 billion ($20.4Bln) in its most recent annual earnings, said the ruling came from an arbitration court over a contract concluded prior to the group’s spin-off in 2016.

Uniper said that the arbitration proceedings, under the rules of the International Chamber of Commerce, began in early 2021 and related to the pricing provisions of a long-term LNG supply agreement with an undisclosed counter-party.

Proceedings

“Uniper has been notified on 24 November 2023 of an award against a subsidiary in arbitration proceedings under the rules of the ICC which began in early 2021,” said the Uniper statement.

“The proceedings between the Uniper subsidiary and a European energy company relate, inter alia, to the pricing provisions of a long-term agreement for the supply of liquified natural gas (LNG), concluded prior to the spin-off of Uniper in 2016 and which has since expired,” Uniper explained.

“A payment to the opposing party of an estimated €550 million related to the retroactive re-pricing of the long-term agreement would be due under the terms of the award,” it added.

“The additional payment will have a full impact on the annual result of Uniper. Uniper is currently analyzing the reasoning of the decision and reviewing all possible avenues of legal recourse against the award,” stated the company.  

The 2017 report of the International Group of LNG Importers (GIIGNL) showed a 15-year contract under which Italian energy company Eni agreed to supply Uniper with 650,000 tonnes of LNG per annum between 2007 and 2022.

However, Milan-based Eni has so far declined to comment on the issue.

Uniper said in October 2023 that it expected adjusted earnings before interest and tax of between €6 billion to €7Bln and adjusted net profit of €4Bln to €5Bln.

Gazprom issues

Uniper was spun from German utility E.ON in 2016 and has also been involved in lawsuits against Gazprom, the former supplier of pipeline natural gas to Germany. At the time Uniper was under the control of the new owner, the Finnish power company Fortum.

However, Uniper was then formally taken over from Fortum in December 2022 in a deal with the German State that had included clearances from the European Commission to save Uniper from collapse.

Uniper itself had launched legal proceedings in 2022 against Gazprom which first cut and later suspended deliveries, sending Uniper into crisis.

Uniper’s bad luck was compounded in 2022 as it was also a buyer of LNG cargoes from the US Freeport LNG plant in Texas closed for part of 2022 and early 2023 by the June 8 fire.

The Wilhelmshaven LNG terminal commenced regular operations in March 2023, using the floating storage and regasification unit, the “Höegh Esperanza”.

The facility was developed by Uniper in record time and became the first German LNG import terminal to start operations on December 21, 2022, initially in trials. 

Fortum and Westinghouse Electric Company of the US have signed an accord to explore prerequisites for the development and deployment of new nuclear plants in Finland and Sweden.

Excelerate Energy, the leading US provider of floating LNG import terminals with increased demand from Europe, reported soaring revenues linked to operations in Finland and South America and with an imminent project start in Germany.

Excelerate Energy, the leading US provider of floating LNG import terminals facing increased global demand in Europe and elsewhere for its services, has extended its credit facilities as activities increase and to finance the purchase of a vessel.

One of the companies involved in the German North Sea liquefied natural gas import project at Wilhelmshaven has announced an open season to fast-track LNG imports into Germany and the European Union.

German utility E.ON has formed a partnership with Belgian start-up Tree Energy Solutions (TES) to develop the North Sea facility and TES has announced the open season to gauge interest.

The Wilhelmshaven plan revolves around the construction of a new “green gas” terminal at the port which will initially accept shipments of mainly LNG to help reduce Germany’s reliance on Russian pipeline gas before a “green hydrogen” solution is safely developed by 2030 or later.

E.ON has signed a memorandum of understanding with Australian billionaire Andrew Forrest’s Fortescue Future Industries to import to Europe up to five million tonnes of “green hydrogen” from Australia or other locations by 2030.

Until then the North Sea facility will have to make do with LNG and TES has asked for LNG regasification capacities, shipment offers or other ideas in the consultation.

“The open season is accessible to all parties seeking to import LNG in the drive to reduce EU and Germany energy dependence on Russia,” said a statement.

Expressions of interest

“Parties are invited to submit an expression of interest to reserve capacity and services for the import of LNG volumes,” it added.

TES is planning for initial capacity to import up to 16-20 billion cubic metres per annum of natural gas from 2025 onwards.

The terminal will be connected through a pipeline to the European high-pressure gas grid.

“Terminal and pipeline capacity may be further expanded through the integration of further LNG tanks and commissioning of a second export pipeline,” it added.

“The expansion's timing and size will be determined by market demand for LNG imports from 2025 onwards, as well as the planned transition to green and clean, hydrogen-based gas,” it explained.

“To help decarbonise Germany and neighbouring markets, from 2027-2028 onwards, the Wilhelmshaven regasification terminal will, as part of the Wilhelmshaven Green Energy Hub, increasingly be reserved for imports of fossil-free green gas.,” it stated.

Six berths

According to the developers, the Wilhelmshaven terminal layout will ultimately comprise six ship berths, 1,600,000 cubic metres of onshore storage capacity using eight onsite tanks, of which four will be available during the initial stage.

The terminal also has plans to offer direct access to an extensive gas pipeline network, including existing salt caverns at Etzel and proximity to the Dutch Groningen gas grid infrastructure.

“The TES-Wilhelmshaven project is unique in accelerating Germany’s and Europe’s plans to decarbonise the energy market at scale whilst creating the opportunity to shift away from Russian gas imports as the way out of the current energy crisis,” said Otto Waterlander, Chief Commercial Officer at TES.

“The open season makes it possible to materially meet the needs of the market and will help provide energy security for Germany and the rest of Europe by accelerating the growth of green gas imports,” he added.

The German Association of Gas Transmission System Operators (FNB Gas), which groups a dozen companies overseeing 40,000 kilometres of natural gas pipeline flows and other infrastructure, has published its development and implementation plan through 2030, including up to 200 gas projects and provisions for just two LNG import terminals.

Nov 9 (LNGJ) - LNG Terminal Wilhelmshaven GmbH, the developer of a floating regasification facility on the German North Sea coast led by the utility company Uniper, said it was re-evaluating its plans. Uniper itself explained that this situation had been caused by the reluctance of market players to make binding bookings for import capacities in the current circumstances. Uniper CEO Andreas Schierenbeck said that LNG was a growth market and natural gas is playing a bigger part in ensuring security of supply and in decarbonizing the global energy system.

   “This is why Uniper is committed to ensuring a secure supply of LNG both now and in the future. But it's also clear that all considerations must meet the same strict economic criteria,” added the Uniper CEO. “We will now discuss all this in depth with those who, like me, consider the development of such an import terminal in Germany to be a fascinating idea and will continue to support it,” stated Schierenbeck.

Gaztransport and Technigaz (GTT), the French technology firm for designs of systems for the maritime transportation and storage of liquefied natural gas, said it had completed an LNG terminal and bunkering training simulator for the Maritime Training Centre in Hamburg to develop personnel skills before Germany makes its debut as an importer and maritime fuel supplier.