German LNG Terminal received a boost from the government as it looks towards making a final investment decision on its import project in Brunsbuettel.
The firm, owned by Dutch Gasunie and Vopak, and Germany’s Oiltanking, said German regulatory authority, Bundesnetzagentur, granted it exemption from network access and tariff regulation.
However, the decision is subject to review by the European Commission.
According to the request, it applies to the annual throughput capacity of 8 billion cubic metres of gas on a long-term basis from the date of the terminal’s commercial launch, it said.
“In principle, the decision offers our customers a stable regulatory regime,” Rolf Brouwer, managing director of German LNG Terminal said.
“It represents another important step forward and therefore also another crucial element on the way to obtaining the final investment decision,” Brouwer added.
The LNG terminal developer submitted the application for exemption from tariff regulation back in July 2018. It received the draft exemption decision in October this year.
Such an exemption is possible for LNG facilities inter alia if the investment improves competition in gas supply and security of supply, the firm said.
Earlier this year, the joint venture selected a Spanish-German partnership as an exclusive candidate for the final phase of its EPC tender procedure.
The partnership consists of Spain’s Cobra Instalaciones y Servicios, Sener, and Germany’s TGE Gas Engineering.
German LNG Terminal said then it planned to sign a binding EPC contract by the end of this year.
The contract scope includes a jetty with two berths, with both unloading and loading capabilities, for LNG carriers ranging from 1,000 up to 265,000 cbm.
Additionally, the terminal will have two storage tanks and LNG regasification and distribution facilities on the Brunsbuttel site in the greater industrial and economic zone of Hamburg.