On 20th December, the European Commission (EC) gave permission for German subsidies worth €4.06 bill for the operation of four floating LNG import terminals by state-owned Deutsche Energy Terminal (DET).
The FSRUs were chartered in 2022 at what was deemed at the time to be a high charter rate paid to secure their employment.
The approved state aid "significantly contributes to ensuring continuity of gas supply to Germany and neighbouring countries following the end of Russian pipeline gas imports," said EC Vice President, Teresa Ribera.
This grant contributes to reducing the dependency on Russian fossil fuels and enables the diversification of energy supplies, she added.
The four FSRUs are a temporary solution until the construction of onshore LNG terminals is completed.
The subsidies will cover losses incurred as the terminals were chartered at the height of the EU energy crisis, as a result of Russia cutting fuel exports to the bloc in retaliation for its support of Ukraine.
DET agreed to sublet the floating terminals if the construction of the permanent replacements was completed before the charter contracts expire, the commission said.
On 23rd December, DET marketed new capacities for LNG regasification for one of its its two terminals at Wilhelmshaven and at Brunsbüttel.
DET has since reported that all the capacity volumes were sold and they were valid for January, February and March, 2025.
This was the first of two steps in the current marketing process. DET initially offered three slots per terminal for short-term capacities on the PRISMA platform.
In addition, it will also offer further capacity for 2025 and beyond to the international market via PRISMA in late January/early February. 2025, at a date yet to be confirmed.
