German LNG terminals will be twice as expensive – Reuters – RT Business News
The estimated cost of the project will exceed 6 billion euros, reports the media, quoting the Ministry of Economy
The acquisition and maintenance of floating liquefied natural gas (LNG) terminals will cost Germany at least 3 billion euros more than originally estimated, Reuters reported on Monday, citing a statement from the country’s economy ministry. .
The overall cost of the terminals, also known as Floating Storage and Regasification Units (FSRUs), is now estimated at around €6.56 billion, more than double the initial budget of €2.94 billion.
“Additional costs have been determined through extensive consultation with many stakeholders and initial forecasts have been refinedthe ministry told the media in a statement, noting that the variation in cost came from additional operating expenses and infrastructure that needs to be built. According to the ministry, the parliamentary budget committee has already approved the increase in funding for the terminals.
Last week, Germany completed construction of its first floating FSRU, in the North Sea port of Wilhelmshaven. Federal Economics Minister Robert Habeck said at the time that Wilhelmshaven would become operational by the end of the year, along with the second terminal at the port of Brunsbuettel in the North Sea. Similar projects in Stade and Lubmin should start operating at the end of 2023, as well as the second FSRU in Wilhelmshaven. Each site has a planned regasification capacity of five billion cubic meters of LNG per year.
Germany completes its first LNG import terminal
In total, Germany’s five FSRUs are expected to cover a third of the country’s annual gas needs, based on 2021 levels. Berlin has high hopes for the project in light of declining gas flows from Russia to both because of Ukraine-related sanctions and the suspicious Nord Stream gas pipeline explosion in September, which removed a major route for Russian gas to the EU.
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