EC approves Germany’s €40M support measure for Brunsbüttel LNG terminal

The European Commission (EC) has approved a €40 million German support measure for the construction and operation of a new land-based LNG terminal in Brunsbüttel which will replace the FSRU currently operating at the site.

The terminal with an annual capacity of 10 billion cubic meters will comprise import, storage and distribution facilities, and it is planned to start operating by the end of 2026.

The beneficiaries of the measure are the German energy operator RWE and the Dutch energy network operator Gasunie.

The company German LNG Terminal GmbH (GLNG) will build and operate the LNG terminal. GLNG will have three shareholders: (i) the German government through the investment and development bank KfW with a 50% stake; (ii) Gasunie with a 40% stake; and (iii) RWE with a 10% stake.

The total investment volume of the project is approximately €1.3 billion.

The LNG terminal will be constructed taking into account the technical specifications necessary to allow its conversion into a terminal for the import of renewable energy carriers (e.g. renewable hydrogen or renewable hydrogen derivates), thereby avoiding a lock-in of gas. The terminal will be converted after 15 years of operation, at the latest by 2043.

The onshore LNG terminal will replace the government-chartered FSRU Hoegh Gannet which is currently serving as the floating LNG terminal in Brunsbüttel. Once the land-based terminal goes into operation, the FSCU can be chartered out or used as an LNG tanker, Germany’s Federal Ministry of Economy and Climate Protection said.

• Elbehafen LNG terminal starts regular commercial operations
• RWE’s Brunsbüttel terminal welcomes first LNG cargo from ADNOC

Upon approving this German measure, the EC noted it will contribute to the security and diversification of energy supplies in Germany and help end dependence on Russian fossil fuels in line with the REPowerEU Plan.

The EC found that the measure facilitates the development of economic activity, in particular the import of gas, and is necessary and appropriate to improve the security of gas supply of Germany and neighbouring countries.

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