Shell pens MoU to book German LNG capacity
Shell has signed a memorandum of understanding (MoU) on the long-term booking of a "substantial" part of the capacity of a planned LNG import terminal in the German port of Brunsbuttel, the project's operator reported on March 23.
The two sides hope to complete a binding agreement as soon as possible, German LNG Terminal said. The terminal's planned capacity is 8bn m3. The German LNG Terminal group is led by Dutch gas grid operator Gasunie.
Germany has embraced LNG as a means of safeguarding its energy security while weaning itself off Russian gas. The government recently put the certification process for Russia's Nord Stream 2 pipeline on hold, and has pledged support for two regasification terminals – one in Brunsbuttel and another in Wilhelmshaven.
Construction is due to start later this year on the Brunsbuttel facility, with the project set to receive funds from German state-owned investment bank KfW under a memorandum signed earlier this month. Under the deal, KfW is due to take a 50% stake in the development. German energy group RWE is also expected to book some of its capacity.
"The signed MoU with Shell, as well as a noticeable increase in interest from the market, demonstrates the importance of the import terminal in Brunsbuttel," German LNG Terminal's managing director Michael Kleemiss said in a statement. "It is a key step in contributing to security of supply in Germany in the near term, as well as more widely in Europe."
In another recent development in Germany this month, Hanseatic Energy Hub announced on March 21 that it was inviting expressions of interest in capacity bookings at a third planned import terminal in the country in Stade. Germany's government has also been in talks to procure Qatari LNG.