The European Union has approved state funding for floating LNG terminals off the German coast. A good €4bn is involved.
Four so-called FSRUs (Floating Storage and Regasification Units) are currently in port in the three ports of Wilhelmshaven (2), Brunsbüttel and Stade to regasify liquefied natural gas (LNG) coming from the sea and feed it into the German grid.
In December 2022, Germany chartered these four special tankers and founded the state-owned company DET, which was entrusted with operating the terminals. The measure aims to remedy the disruption to the energy market caused by Russia’s war of aggression against Ukraine and the suspension of pipeline gas supplies from Russia to Germany.
The floating terminals serve as an interim solution until permanent onshore LNG terminals are completed in Germany. Should this be achieved before the deadline, Germany has committed to handing over the FSRUs to other users.
The aid in the form of a direct grant covers DET’s losses for operating the facilities until the end of the charter period. The payments are expected to total €4.06bn between 2023 and 2033. If the losses turn out to be higher than expected, the net contribution could increase to a total of €4.96bn, it is said.
