A critical milestone has been reached this week as Swiss-based international energy trading company Axpo and German LNG Terminal GmbH signed a Heads of Agreement for a long-term capacity contract for the LNG terminal in Brunsbüttel, northern Germany. This is an important step towards achieving the final investment decision for the construction of Germany’s first land-based LNG terminal.
The aim of German LNG Terminal is to develop, build, own and operate a multifunctional LNG import terminal in northern Germany. The terminal will contribute to energy diversification in Germany and will support the introduction of LNG as a cleaner fuel alternative in maritime and road transport, reducing the environmental impact of both shipping and heavy goods vehicles. The terminal will combine a variety of services such as unloading and loading of LNG ships, storage of LNG, regasification of LNG into the German natural gas pipeline grid and distribution of LNG in road tankers to nearby users.
Thinking to the longer term, with the vision of a decarbonised energy sector in Europe, LNG may play an essential transition role. The long-term future could be renewable electrical power being used to produce hydrogen through electrolysis of water. But, achieving that goal may require some transitional phases to be worked through. For example, the use of natural gas to produce hydrogen on steam methane reformers (SMRs) is in plan for the H21 Leeds City Gate project in the north of England. Those SMRs can then be supplemented, or replaced, by large-scale electrolysis units in the future.
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