Swiss energy trading company Axpo and German LNG Terminal, the joint venture developing Germany’s first LNG terminal, have signed a heads of agreement for a long-term capacity deal at the facility in Brunsbuettel in northern Germany.
This is another important step towards taking the investment decision, the companies said in a joint statement on Monday.
Domenico De Luca, head business area trading & sales and member of the executive committee of Axpo Group, said, “With the shutdown of numerous coal-fired power plants expected in the medium term, LNG is expected to gain further importance as an energy source and will be able to increase its market share
in Europe. Our goal is to further optimize the delivery of LNG to our customers together with German LNG Terminal.”
Axpo’s LNG portfolio includes long-term natural gas supplies, a 5 percent stake in the Trans Adriatic Pipeline (TAP) and distribution channels in most European countries.
Rolf Brouwer, managing director of German LNG Terminal, added, “We continue to powerfully move forward with the realization of our terminal project.”
The preparations for the terminal’s permitting approval process are further moving forward, the statement reads.
German LNG Terminal is a joint venture of the Dutch companies Gasunie and Vopak with Oiltanking, a Marquard & Bahls unit.
In spring 2019, German LNG Terminal will apply for the required permit for the 8 bcma terminal. The investment decision is scheduled for the end of 2019. After receiving the necessary permits, construction work could then start in 2020 with the terminal presumably being operationally by the end of 2022.