German LNG Terminal, the developer of Germany’s first LNG terminal in Brunsbuettel, has reached another long-term commercial capacity agreement with an unnamed global LNG player.
The parties agreed on the commitment of a substantial part of the terminal capacity, the company said in its statement on Tuesday, adding that negotiations with other interested parties are ongoing.
As a result of strong market demand, German LNG Terminal, a joint venture of the Dutch companies Gasunie and Vopak with Oiltanking, a Marquard & Bahls unit, will apply for permits with a total terminal capacity of 8 bcma.
Rolf Brouwer, managing director of German LNG Terminal, said, “This additional commercial agreement demonstrates that the market has confidence in the prospects of LNG in Germany.”
He noted that the German federal government has stipulated in its coalition treaty to develop LNG infrastructure in Germany.
Preparations for the terminal’s permitting approval process are well underway, with a ‘scoping meeting’, organized and chaired by the approving authorities, taking place at the end of January.
At this meeting approving authorities, environmental organisations, experts and further relevant third parties discussed with German LNG Terminal the subject, scope and method of the necessary environmental impact assessment with regard to water and emissions legislation as part of the overall planning approval process.
Obtaining construction approval for the planned LNG terminal is one of the conditions for being able to make the final investment decision in late 2019, the company said.
Construction work will then start in 2020 with the terminal being fully operational by the end of 2022.