BERLIN – In a bid to secure Germany’s energy independence from Russian gas imports, the government has been working tirelessly to diversify its energy sources. The construction of liquefied natural gas (LNG) terminals has been identified as a short-term solution to tap into alternative gas supplies. To facilitate this process, the German parliament has approved the amended LNG Acceleration Act.
LNG, or liquefied natural gas, can be transported by ships to terminals and then injected into the gas grid. These floating LNG terminals are expected to cover approximately one-third of the country’s gas demand.
What does the LNG Acceleration Act entail? Enacted on June 1, 2022, the LNG Acceleration Act is a part of the measures undertaken by the German government to swiftly replace the lost natural gas supply from Russia. To import LNG from other countries, Germany urgently needs to establish LNG terminals and the necessary pipelines, which were previously non-existent.
The Act streamlines approval, allocation, and review processes, allowing for exemptions from environmental impact assessments. Public participation is still ensured, although the timeline has been reduced to two weeks. As a result, the construction of gas pipelines and infrastructure for floating LNG terminals commenced in the summer of 2022.
What are the recent amendments to the LNG Acceleration Act? The recent changes to the LNG Acceleration Act aim to further secure the injection of liquefied gas at German coastal locations. The government introduced the corresponding draft on May 17, 2023, and the Bundestag (German parliament) approved it on July 7. The amendments partially came into effect on July 15, one day after the law’s promulgation.
The new adjustments include legal adaptations arising from the project planning of various fixed and floating LNG terminals. Specific regulations have been introduced to expedite the establishment of vital connecting and long-distance pipelines to transport the liquefied gas.
Furthermore, existing provisions for future climate-friendly repurposing of onshore LNG terminals have been clarified. The government aims to make the LNG infrastructure suitable for future hydrogen infrastructure (Green Readiness) and prevent stranded investments that do not align with climate neutrality objectives.
Why is the LNG Acceleration Act necessary? The unlawful Russian invasion of Ukraine prompted the German government to reassess the country’s energy and security situation. The current developments demonstrate that Russia can no longer be relied upon as a stable energy supplier. The suspension of gas deliveries to European partner countries highlighted the urgency of reducing dependence on Russian energy imports.
The LNG Acceleration Act is a response to this challenge. It aims to enhance Germany’s national energy security by ensuring gas supplies from other nations. However, swift establishment of LNG infrastructure is essential for Germany’s energy security. All projects mentioned in the Act are considered to be of paramount public interest and in the interest of public safety.
What are the existing LNG terminal sites? As of the beginning of 2023, two floating storage and regasification units (FSRU) initiated by the federal government have become operational in Wilhelmshaven and Brunsbüttel. Additionally, a privately operated FSRU in Lubmin on the Baltic Sea has been active since the start of the year. These three terminals combined can handle LNG deliveries of approximately 13.5 billion cubic meters in 2023. Furthermore, the government is in the process of building three additional floating LNG terminals, namely Wilhelmshaven II, Stade, and Lubmin.
What other sites are planned for LNG terminals? Despite the progress, further measures are required to secure energy supply, as the four LNG terminals planned for the North Sea can only replace around half of the lost Russian gas deliveries even at full capacity. This is insufficient to cover the entire country’s energy needs securely.
Therefore, in close collaboration with the state government of Mecklenburg-Western Pomerania, the port of Mukran on Rügen Island has been included in the amended law as a project site on the Baltic Sea coast. Mukran Port is designated as a commercial and industrial area, making it more suitable for the construction of floating LNG terminals and related facilities. The relevant state authorities will thoroughly review the specific planning documents during the approval process.
However, the originally considered locations in Hamburg and Rostock will not be pursued further, as they are not suitable for the landing and injection of liquefied natural gas.
How does the Act align with climate protection efforts? Fossil gas is expected to play a transitional role for a limited period. Therefore, new gas power plants and associated infrastructure should be designed to be gradually converted to carbon-neutral products like hydrogen. The LNG infrastructure is a short-term solution for alternative gas imports. Simultaneously, the German government plans to make the infrastructure suitable for hydrogen use in the future.
The LNG Acceleration Act stipulates that onshore LNG terminals and the required natural gas pipelines must also be suitable for future conversion to hydrogen. The permits for LNG facilities should be time-limited until December 31, 2043, in line with Germany’s climate targets. The facilities can only continue operating beyond this date if they are used for carbon-neutral hydrogen and its derivatives. This measure ensures that the goal of climate neutrality by 2045 remains achievable.
https://www.bundesregierung.de/breg-de/aktuelles/sichere-gasversorgung-2037912