Mukran LNG Terminal: Expansion Plans and Challenges Ahead
Current Scenario and Performance
- Seeking New Business Partners for LNG Facility in Rügen
The Mukran LNG terminal, located on the island of Rügen, has been experiencing tough times, with its operations falling below expectations. Currently, the terminal is only managing to process around 5% of Germany's gas consumption, significantly less than its potential 14% from the previous quarter1.
The company behind the terminal, Deutsche Regas, aims to restore its original feed-in capacity of 13.5 billion cubic meters of gas by 20271. This makeshift recovery plan involves reactivating a Floating Storage Regasification Unit (FSRU) to boost the terminal's capacity.
Future Ambitions and Growth
Seeking a brighter future, Deutsche Regas has launched a bid round for long-term regasification capacity1. They're offering an additional 5 billion cubic meters of capacity per year from 2027 to 2043, in an attempt to attract new customers and expand their business.
Obstacles and Controversies
However, the road to expansion isn't smooth. Local opposition and environmental groups like the German Environmental Association (DUH) have raised concerns over the project's environmental impact, branding it a "bad investment"1. Additionally, there are worries about overcapacity within Germany's LNG infrastructure as more terminals are added.
Operational Issues
In the past, the terminal faced challenges in loading its regasification ships in the harbor, which led to the termination of a charter contract for one of the floating terminals1. Deutsche Regas still blames this issue on the pricing policy of its state-owned competitor, Deutsche Energy Terminal (DET).
- The expansion plans for the Mukran LNG terminal in Baltic Sea include constructing a new policy to attract more customers and increase its capacity to 10 billion cubic meters per year by 2027, aiming to overcome the current 5% share of Germany's gas consumption.
- The communities near the Mukran LNG terminal have expressed concerns about the potential employment opportunities that may arise from the terminal's proposed expansion, as the new policy may generate approximately a billion new jobs to support the terminal's growth.
- Despite Deutsche Regas' efforts to enhance the terminal's infrastructure, ongoing debates concerning the employment policy and its implications on the community's workforce persist, particularly in light of increasing concerns over overemployment and job redundancy caused by the expansion.
