The American LNG company Excelerate has signed a term sheet with France’s Engie to deploy a 5 bcm/year floating regasification and storage unit (FSRU) to the port of Wilhelmshaven, northwestern Germany. Under the proposed agreement, Excelerate would deploy an FSRU from its integrated fleet to provide regasification services for a period of five years at Germany’s planned LNG import terminal, which is being developed by Tree Energy Solutions and Engie. No specific date has yet been given for the deployment, but it is expected to be operational for the 2023-2024 winter.
The project is part of five German LNG terminal projects initiated since the start of the war in Ukraine, as Berlin is trying to avoid an energy crisis this winter amid dwindling supplies of Russian gas, of which the country is still very reliant on.
Indeed, in May 2022, it was announced that Uniper would start building a 7.5 bcm LNG terminal, also in Wilhelmshaven. Furthermore, also in May, Germany announced it would charter four FSRUs (two by Uniper and two by RWE) with a total added import capacity of 25 to 29 bcm/year. Still in May, RWE signed a preliminary deal with Sempra to import 2.25 Mt/year (3 bcm/y) of US LNG. In March 2022, Gasunie and RWE announced plans for an 8 bcm/year LNG import terminal in Brunsbüttel, due to start construction in September 2022.
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