FSRU Excelsior; Source: Excelerate Energy

European firm sets up shop in Germany to handle work on Wilhelmshaven 2 LNG terminal

Business Developments & Projects

Lithuanian liquefied natural gas (LNG) terminals’ operator KN Energies (KN) has hung out its shingle in Germany by establishing a German subsidiary, KN Energies Deutschland, within its corporate group, which will be in charge of executing its assignment with the German state-owned company, Deutsche Energy Terminal (DET), by providing technical operation and maintenance services for the second floating LNG import terminal at Wilhelmshaven, known as Wilhelmshaven 2.

FSRU Excelsior; Source: Excelerate Energy

After KN Energies won the tender launched by DET in the spring of 2024 to provide services for the Wilhelmshaven 2 LNG terminal, the contract with the German operator of four terminals was signed for a pre-operational period up to the start of commercial operation, followed by a five-year technical operation and maintenance period, with the possibility to extend the contract.

While the Lithuanian firm has incorporated KN Energies Deutschland in Wilhelmshaven, Lower Saxony, all shares in the new affiliate are held entirely by companies within the KN Energies group, similar to the firm’s Brazilian subsidiary, KN Açu Servicos de Terminal de GNL.

The German subsidiary will entail specialists in human resources, health, safety, and environment (HSE), alongside mechanical, electrical, and automation engineering, operations, and maintenance management. According to KN Energies, active recruitment is underway for German team members, who will be supported by the staff from Lithuania and trained in the necessary operational knowledge.

Linas Kilda, Chief Business Development Officer at KN Energies, commented: “As we continue to implement KN Energies’ long-term strategy, we are successfully bringing the company’s longstanding experience to foreign markets. In the first half of this year, KN Energies won two tenders launched by Deutsche Energy Terminals, which we consider a sign of the German state-owned company’s confidence in our competence and the quality of our services.

“We are delighted to remain a leader in the market of floating LNG import terminals in the European Union, successfully contributing to energy independence projects in European countries. The joint company in Germany will allow us to apply our competences in this country, be located nearby and to achieve a long-term partnership with our key partner in Germany.”      

After commercial operations of the Wilhelmshaven 2 LNG terminal start, KN Energies will be responsible for the technical operation and maintenance of the terminal’s infrastructure, including the berth, which Van Oord is responsible for constructing, its equipment, and the pipeline, the organization of technical teamwork, and the coordination of preventive actions.

With an LNG storage capacity of 138,000 cubic meters, the floating storage and regasification unit (FSRU) Excelsior, owned by the U.S.-based Excelerate Energy, will be deployed at this LNG terminal, which is currently under construction. The FSRU has an annual nameplate regasification capacity of 5 billion cubic meters of natural gas.

France’s Geocean was selected for work at the LNG terminal, which was scheduled to begin commercial operations in the second half of 2024, after FSRU Wilhelmshaven, a joint venture between Tree Energy Solution (TES) and ENGIE, signed a contract for installation works with ECOnnect Energy, following the execution of the supply contract, signed in 2022, to deliver a jettyless ready IQuay solution for the offshore jetty at Wilhelmshaven.

Thanks to this, Geocean recently began the initial stage of the project to install a 1.7-kilometer-long gas import pipeline 14 meters under the sea, directly connecting the FSRU Excelsior to the German grid, as well as to deliver the complete installation services to FSRU Wilhelmshaven for the IQuay.

The French player has installed the first thermo composite pipes (TCP) bundle for the jettyless IQuay F-Class solution for LNG import to Wilhelmshaven, moving away from the traditional use of steel pipe to a more flexible, quicker-to-deploy solution.

The firm unloaded three of the six TCP reels at the Eurogate terminal and loaded the pipeline end manifolds (PLEMs) and flexible riser hoses on board the Fast-Flex barge, which set as near as possible to the shore. As TCP lines are connected to the gas grid at the shore, subsea PLEM installation came up next on the firm’s agenda.

Wilhelmshaven 2 LNG terminal project: Installation of the first TCP bundle for the IQuay F-Class

DET, part of the German Federal Ministry for Economic Affairs and Climate Action, operates four LNG terminals on the German North Sea coast, including Wilhelmshaven 1Brunsbüttel, Wilhelmshaven 2, and Stade. The last two are said to be under construction.

The country’s first floating terminal for importing LNG in Wilhelmshaven was officially commissioned for service in December 2022. Fairplay Towage Group has been picked as the towage provider for the floating LNG terminals in Brunsbüttel, Stade, and Wilhelmshaven.