Germany Goes Ahead With First LNG Terminal to Cut Dependence on Russian Gas

BERLIN–Germany unveiled more details Saturday on its plan to build its first liquefied natural-gas terminals as it seeks to wean itself off its dependence on Russian gas.

The terminals are the latest step in Berlin’s diversification efforts that have been urgently ramped up in recent days following Russia’s attack on Ukraine. Germany gets around 55% of its gas from Moscow and has long been resistant to diversifying away from cheap and plentiful Russian energy supplies.

Germany last week halted the $11 billion Nord Stream 2 project, which would have doubled the capacity of an existing pipeline traveling along a similar route. The government also announced plans for gas and coal storage and commissioned its gas market trading hub to buy LNG for 1.5 billion euros, or the equivalent of $1.64 billion, from outside Russia.

On Saturday, the Economy Ministry said that state development bank KfW had signed a memorandum of understanding with the German energy company RWE AG and Dutch ga- infrastructure group N.V. Nederlandse Gasunie to build an LNG terminal in the northern port city of Brunsbüttel. Gasunie will operate the terminal.

“It is necessary to reduce our dependence on Russian imports as soon as possible,” Economy Minister Robert Habeck said. “Russia’s war of aggression against Ukraine makes this mandatory.”

The Brunsbüttel LNG terminal will have an annual regasification capacity of 8 billion cubic meters. It will be eventually upgraded to process hydrogen derivatives such as ammonia, the ministry said. It didn’t provide a timetable for the completion of the project.

German Chancellor Olaf Scholz has said that the country will fast-track another LNG terminal, at Wilhelmshaven on the North Sea. Local authorities have started to discuss plans for the project site and the terminal could be operational within three years.