Wednesday, June 27, 2007
RWE Unveils Plans for LNG Terminal at Wilhelmshaven
June 27, 2007
Matthew Hall
Global Insight Daily Analysis
RWE has announced that it will combine with U.S. company Excelerate Energy and German group Nord-West Oelleitung to develop a new LNG import facility at the deep-sea port of Wilhelmshaven in northern Germany. The proposal will see LNG transported to the port on Execelerate vessel, before undergoing onboard regasification and being piped directly into the German pipeline network. RWE said the process, similar to that adopted at Teesside in the United Kingdom, is highly cost-effective as it does not require any land-based regasification infrastructure. The new facility is designed to deliver 600 Mcm of gas into the network each hour and could be operational by 2010.
The companies will now undertake a further technical examination of the Wilhelmshaven port and seek the required permissions from various authorities.Significance:Germany—continental Europe's largest gas consumer—does not currently operate any LNG import facilities, although a separate proposal to build a 10-Bcm-per-year facility at Wilhelmshaven is currently planned by Germany utility E.ON with a possible completion date of 2011. In addition to the new offshore regasification project, RWE is also looking at delivering LNG to the German market through import terminals in neighbouring countries such as the Netherlands. The company plans to use LNG imports to erode the market share held by its rival E.ON and to further its strategy to become a major gas trader in continental Europe.
