RWE to develop LNG import facility in Germany

The gas midstream unit of German utility RWE is to develop an import facility for liquefied natural gas in Wilhelmshaven, northern Germany, alongside US-based Excelerate Energy and Nord-West Oelleitung. The move is part of RWE's strategy to enhance its position in the European gas market.

The project partners want to use Excelerate’s technology, which enables not only the transportation of liquefied natural gas (LNG) on Excelerate vessels, but also the direct supply of natural gas into the pipeline network after LNG regasification on board, at a new German GasPort.

RWE said that the Excelerate technology, which is already being used at an Excelerate GasPort at Teesside, UK, which has been operational since February 2007, is highly cost-effective as it does not require investment in LNG regasification infrastructure on land.

It is our aim to significantly strengthen our position in the gas business, says Harry Roels, CEO of RWE, and to ensure Germany has access to multiple sources of gas to guarantee security of supply. A German GasPort meets both of these objectives.

The GasPort will introduce the Excelerate technology in Germany for the first time. The aim is to have the ability to feed up to 600,000 square meters per hour of regasified LNG into the German network by the end of 2010. An average family home uses some 2,200 square meters of gas per year, RWE said.

The project is based on an agreement between RWE and Excelerate on the joint development of LNG import facilities in Europe. The key advantage of the GasPort concept is the very flexible delivery of gas during times of peak demand, RWE said.

We are very pleased that the relationship established between Excelerate and RWE now affords us the opportunity to bring our GasPort and Energy Bridge technologies to Germany, said Kathleen Eisbrenner, CEO of Excelerate Energy. The German GasPort will further serve our goal of providing producers and consumers alike, cost effective alternatives to the traditional LNG distribution model.

The project is still subject to securing permissions, which will be issued by various authorities concerning marine, environmental and pipeline connection matters.