Uniper Considers Switching LNG Project to H2 (Update)
(Adds comment from Uniper)
Germany's Uniper is considering converting a planned LNG terminal in Wilhelmshaven to import hydrogen, after failing to attract enough binding booking for its capacity, the company said on November 6 in a statement. However, this is only an option and the plant may yet proceed but on a smaller scale, the company later told NGW. The company also told NGW that plans to buy Canadian LNG from the planned Nova Scotia project were separate from the German import terminal project.
Uniper's procedure for gauging interest from market players ended on October 30 "without a sufficient response," the company said. "Numerous market players took part in the procedure and expressed general interest, but not enough of them have made their booking intentions binding."
ExxonMobil had provisionally booked a large portion of capacity under a heads of agreement signed almost two years ago, meaning that either the US major's booking was insufficient to take the project over the line or it has cancelled it. It is reducing its some of its operations in Europe and the Dutch gas marketing joint venture GasTerra, of which it owns 25%, is to close in December 2023.
Uniper told NGW: "Although we are now re-evaluating the situation and may shift the focus of the terminal project, we will still be open for any partnership with ExxonMobil and other partners. Also, there is still an option to continue with the planning of an LNG terminal in Wilhelmshaven – maybe in a smaller dimension as originally planned."
Uniper said it was considering several options for using the site to import "environmentally friendly gas," noting that "importing hydrogen directly would also be a possibility in the long term."
The company invited binding offers for the terminal's capacity in September. The project, consisting of a floating storage and regasification unit connected via pipeline to the national grid, was expected to have a regasification capacity of up to 9.8bn m3/yr.
Wilhelmshaven is one of three planned regasification terminals in Germany. The country, despite being Europe's biggest gas market, does not import any LNG directly, instead relying of piped supply mostly from Russia and Norway. Hanseatic LNG is due to hold an open season for a proposed terminal in Stade this year, while the Netherlands' Gasunie and partners aim to finalise LNG supply contracts with Germany's RWE this year to underpin a project in Brunsbuettel.