German utilities are also currently working to conclude LNG supply contracts to ensure LNG cargoes are delivered once the country’s planned LNG import facilities are operational.

“The share of Russian gas deliveries averaged 55% in the past, but this fell to 26% by the end of June,” the ministry said, adding that last year Russia supplied 46 Bcm of gas to Germany.

The lower share in June is a result of Russia’s Gazprom cutting supplies through the Nord Stream pipeline to just 40% of capacity in mid-June, citing issues with maintenance at a key compressor station.

The ministry said the claims of technical problems was a “pretext,” adding that Russia’s share of German supply would fall further in July after Nord Stream was closed for its annual maintenance shutdown on July 11.

It said gas imports from Norway and the Netherlands had increased, but more work was needed to replace Russian gas.

It said it planned to import an additional 1 Bcm of regasified LNG via the Netherlands already in 2022.

Energy savings and electrification could also cut the share of Russian gas in the German supply mix, it said, adding that the ultimate aim remained to largely achieve independence from Russian gas by the summer of 2024.

LNG imports
The ministry said the government was working in close cooperation with the federal states to ensure four floating LNG terminals would be put into operation this year and next with a combined capacity of at least 20 Bcm/year.

That would be enough to replace almost half the Russian gas imports in 2021.

But there is also a need for LNG supply contracts and the ministry said German utilities were looking to conclude agreements for the relevant volumes “supported by political talks.”

German utility EnBW already signed in June a 20-year deal with US LNG developer Venture Global for the supply of 1.5 million mt/year of LNG from the Plaquemines and CP2 LNG export facilities, though only starting in 2026.

The agreement was the first direct binding offtake agreement for long-term US LNG signed by a German company.

Germany’s RWE in late May signed a heads of agreement with the US’ Sempra Infrastructure for the negotiation of a 15-year deal for the supply of 2.25 million mt/year of US LNG, but has yet to finalize the agreement.

Germany has also courted Qatar as it looks to lock in term LNG supply, but no deals have yet been announced.

Germany has no LNG import infrastructure at present, but efforts to develop a number of terminals have intensified since Russia’s invasion of Ukraine.

Concerns over Russian gas supplies to Europe continue to keep gas prices at sustained highs, with the benchmark TTF month-ahead price last assessed on July 19 at Eur156.43/MWh, according to Platts price assessments from S&P Global Commodity Insights.

Terminal sites
There are plans for at least five floating LNG import terminals as well as two permanent onshore sites in Germany.

On July 19, the ministry said it had decided on the locations for all four of the floating LNG import vessels that it has chartered — Wilhelmshaven, Brunsbuttel, Stade and Lubmin.
Source: Platts