Germany inaugurates floating LNG terminal near Baltic Sea
A general view shows a special ship, "Neptune", the floating liquefied natural gas terminal, during the inauguration of the Liquefied Natural Gas (LNG) terminal 'Deutsche Ostsee' in the port of Lubmin, Germany Jan. 14, 2023. (Reuters Photo)


Germany's second liquefied natural gas (LNG) terminal in Lubmin in the north-eastern German state of Mecklenburg-Vorpommern was opened on Saturday in the presence of Chancellor Olaf Scholz.

"We are pleased today we are taking another step toward energy security in Germany," said Mecklenburg-Vorpommern's state premier Manuela Schwesig.

The state's environment minister, Till Backhaus, had previously handed over the operating license to Ingo Wagner, managing director of operator Deutsche Regas.

Afterward, Scholz visited the floating terminal.

After Wilhelmshaven in Lower Saxony, where a terminal was officially opened in December, Lubmin on the Baltic coast is the second German location where an LNG terminal has started operations.

Gas has already been injected into the grid since the beginning of the week as part of a test operation.

The Lubmin site is a vital part of Germany's strategy to turn away from Russian fossil fuels to other energy sources. Since the outbreak of war in Ukraine, Russia has stopped delivering gas via an undersea pipeline to Germany.

Germany is rapidly building up its gas import infrastructure. Within months, the two terminals now in operation were planned, approved, and built.

Another terminal in Brunsbüttel on the North Sea coast will start up shortly.

LNG is delivered by ship from several regions of the world, converted back into a gas, and fed into the gas grid. In addition to increased purchases of pipeline gas from Norway, for example, LNG is intended to replace missing Russian supplies.

The floating terminals are already deployed or planned to have a feed-in capacity of around 5 billion cubic meters of natural gas per year, depending on local conditions.

By comparison, nearly 60 billion cubic meters came through the now-defunct Russia-to-Germany Nord Stream 1 pipeline in 2021.

Germany aims to cover about one-third of its current gas demand via the floating LNG terminals in the winter of 2023-24.

While there were warnings of a gas shortage this winter, this scenario seems unlikely. Most recently, gas storage facilities in Germany were still more than 90% complete after private households and industry reduced their consumption.

According to the operator, the Lubmin terminal is Germany's only privately financed airport. Deutsche Regas put the costs at €100 million ($108 million).

Robert Habeck, the minister for economic affairs and climate protection, had also planned to attend Lubmin on Saturday but fell ill.