German Baltic LNG terminal ready for entering operations, lacks demand – report

Germany’s controversial new liquefied natural gas (LNG) terminal on the Baltic Sea island of Rügen is ready to start commercial operations – but the project lacks demand, reports regional public broadcaster NDR. The terminal, which faces strong opposition from environmentalists, had been stuck in a test phase because some approval requirements - for example concerning fire protection - for the two regasification ships were still outstanding. The regional environment ministry said those requirements have now been met. Deutsche Regas said the two ships, located in the port of Mukran that serve to convert LNG into normal gas, are now connected to the country’s gas pipeline network. According to NDR, the first cargo of liquefied natural gas is not expected in Mukran until the end of August.

The halt of Russian pipeline gas imports following the country’s invasion of Ukraine forced Germany to re-orientate and find new suppliers. It now imports most gas from European neighbours such as Norway and the Netherlands via pipelines, but also spent billions of euros on setting up several domestic LNG import terminals to import gas via ships. About 5 percent of the gas Germany used last year entered the country via ships. Of all the direct LNG supplies that reached it in 2023, the vast majority came from the U.S. Germany already operates two LNG terminals on its North Sea coast.

Environmental activists and some other experts have criticised the country’s LNG push, arguing the plans are outsized and national and European climate targets at risk. They also worry that the massive infrastructure projects could threaten local ecosystems. NGO Environmental Action Germany (DUH), which continues to fight the Baltic LNG terminal in court, said nobody wanted or needed the project. “The LNG terminal is an expensive and unnecessary investment ruin,” argued the activist group’s energy and climate expert, Constantin Zerger, and pointed out that Germany’s gas storages are full.