German LNG Terminal 'Confident of Success'

The Dutch-German-backed German LNG Terminal "continues to believe that the global LNG market and the German energy market offer enough potential for two LNG terminals in Germany," it told NGW in an email November 10. NGW had asked it whether it was hopeful, given Uniper's failure to tie in adequate demand for capacity for its own planned terminal.

German LNG Terminal is in the final negotiations on binding booking agreements with its customers. In addition, German LNG Terminal has received a draft exemption decision from the German regulatory networks authority (BNA). "This represents a further important step and a decisive milestone on the way to a positive investment decision," it said.

"After constructive discussions with BNA, German LNG Terminal has received the draft exemption decision," it said. This however still needs approval from the German anti-trust agency and the European Commission, It says the terminal "will be exempted from tariff- and network access regulation on a long term basis and applies to the total annual throughput capacity of 8bn m³/yr. This is in line with the application of German LNG Terminal and provides a stable regulatory regime to its customers. This is another important step in the development of the first German LNG terminal and a critical milestone on the way to a positive investment decision."

In conclusion, it said: "We are delighted with the commercial aspects of our terminal project. As already announced, we have already agreed several heads of agreements. The negotiations about binding contracts have advanced well. Further discussions with potential customers of the terminal are being progressed."

It did not comment on specific companies who have been linked in capacity talks in the past. Swiss Axpo had earlier expressed interest in booking capacity including 1mn mtyr from Goldboro on Canada's east coast. But Axpo has since appointed a new head of trading and a new CEO.

Uniper told NGW November 6 that it was considering other options, including a smaller terminal and a terminal geared towards hydrogen. US major ExxonMobil had been interested earlier in a significant capacity booking there and Uniper did not rule out the possibility that a deal would be done.