April 7, 2022

Europe currently has 37 LNG regasification terminals, of which 26 are located in EU member states.

Between January 2021 and January 2022 only 40% of these terminals’ capacities were used however, utilization increased to almost 100% during the winter of 2021. This means that existing capacity will not be able to handle a large number of additional cargoes.

In response to Russia’s war against Ukraine, Germany has announced the building of two LNG terminals. Due to high cost of regasification terminals, government backing is required to ensure long-term profitability.

One of these terminals, in the northern city of Stade, can be completed by 2026 and could account for 10% of German natural gas requirements.

Environmental groups in Germany expressed concern that the stated goal of achieving climate neutrality by 2045 will be jeopardized with significant investment in new LNG infrastructure.

The German government is in favor of using more hydrogen as a source of energy, in the decades ahead, by converting LNG terminals to hydrogen terminals. Another option is to use LNG terminals to handle biogas or synthetic methane.

Germany does not have any LNG regasification terminals and relies on Russian gas delivered by pipeline and LNG deliveries via terminals in Belgium, France and the Netherlands.

Source: International Gas Union