As the Russian-led conflict against Ukraine risks fizzling out, Germany, which is over-dependent on the belligerent’s gas, must urgently create alternatives to its supplies. While Russia provides 55% of its gas imports, forecasts have also become particularly critical in terms of supply and demand following the suspension of certification of the Nord Stream 2 gas pipeline linking Germany with its first gas supplier.
Therefore, Berlin must accelerate. And to announce on Saturday that an agreement has been reached to build the first major liquefied natural gas (LNG) terminal located at the mouth of the Elbe, according to the Ministry of Economy and Climate. The European market, in which the US intends to compete with the Russians.
The German government, through the state-owned bank KfW, the Dutch state-owned operator Gasunie and the German energy group RWE, “signed a memorandum of understanding to jointly build an LNG receiving terminal at the Brunsbüttel site” located in the north of the country. This is stated in the message of the ministry.
Accelerated construction
While this type of project could take years, the project partners are working to implement it “as quickly as possible,” the press release said.
The US, the world’s leading LNG exporter, competes for the European gas market with the Russians
In a speech called “historic” to Parliament eight days ago, Chancellor Olaf Scholz no longer ruled out the use of nuclear power or even the accumulation of coal reserves. But if Berlin announced the future construction of two liquefied natural gas (LNG) terminals in the north of the country, bottlenecks are likely to be many.
“We need to reduce dependence on Russian gas imports as soon as possible,” commented Economics Minister Robert Habek.
But unlike onshore pipelines that transport gas directly, LNG in most cases requires an LNG terminal transported by sea. Infrastructures with which France is now better equipped.
The future infrastructure, 50% financed by KfW and operated by Gasunie, will have an annual regasification capacity of 8 billion cubic meters to deliver natural gas directly to the German market.
Support carbon neutrality goals
Despite everything, the new coalition is not giving up on the country’s ambitious goal of achieving carbon neutrality by 2045.
According to Mr. Habek, the future LNG terminal will be equipped from the very beginning for an early transition “to green hydrogen or hydrogen derivatives” to help the first European economy move closer to climate neutrality.
In addition to complying with environmental obligations, the ruling coalition must, above all, ensure that the purchasing power of its households does not fall, which could lead to a serious social crisis. Already exposed to the inflation associated with the recovery from Covid, Germans have already seen their gas bills skyrocket.
On a political level, Olaf Scholz’s government (SPD, Liberals and Greens) should even stage a real witch hunt to satisfy public opinion. Starting with former chancellor (SPD) Gerhard Schroeder, close to Vladimir Putin and on the supervisory board of the Russian giant Gazprom. “There are no personal matters within a public function,” Olaf Scholz said this week.
Ukraine: Olaf Scholz asks his former mentor Gerhard Schröder to step down from his post in Russian companies
latribune.fr
March 05, 2022, 15:41