New LNG terminal on the German island of Rügen is ready, but there is no demand for its capacity

Germany now has another terminal for importing liquefied natural gas (LNG), but there appears to be no demand for its services so far. The terminal’s location on the German island of Rügen is relatively controversial, with the project provoking strong opposition among local residents. In recent years, Germany has leased several floating LNG terminals (FSRUs) to strengthen its energy security after Russian gas supplies were cut off.

The new floating terminal at the port of Mukran on the German island of Rügen can begin commercial operations. However, there is no demand for its capacity, according to the regional public broadcaster NDR, Clean Energy Wire reported. The project was relatively controversial, and the German government even had to find a new location for the terminal following protests by local residents. It was originally supposed to be built near the seaside resort of Sellin, but the vessels were ultimately located at the port of Mukran.

According to the news site, the project remained in the testing phase longer than expected because some permits were still pending. These reportedly included concerns about fire safety. The local environment ministry says all requirements have now been met, meaning the terminal can begin commercial operations. The terminal’s operator, Deutsche Regas, says both floating units have been connected to the local gas grid. However, according to NDR, the first LNG tanker is not expected to arrive at the terminal before the end of the month.

Europe could have too much LNG import capacity

Experts have previously warned of a possible surplus of LNG import capacity in Europe. The situation is not clear-cut, however, as LNG terminals also serve as a “safety net” in case of possible problems with pipeline gas supplies, whether for technical or political reasons.

Another reason for the currently low interest in capacity at the new terminal is likely to be generally weak demand for LNG in Europe. This is due to strong and stable pipeline gas supplies and high levels of gas storage. However, with next winter approaching, gas demand rising and the future of Russian gas transit through Ukraine after the end of this year uncertain, the situation could change quickly.