German utility Uniper and the Dutch Titan LNG signed a memorandum of understanding to accelerate the growth of LNG as a fuel in the downstream markets for industry, road fuel and shipping fuel in Germany.
The parties are planning to develop a technical interface and commercial products for small-scale LNG players from the Wilhelmshaven floating storage and regasification unit (FSRU).
The terminal in Wilhelmshaven will enable the loading of small LNG seagoing vessels and barges. In addition, several truck loading bays are planned to enable the onward transport of LNG by road, Uniper said in a statement.
The distribution of LNG by truck from Wilhelmshaven is seen as an important impulse for the establishment of LNG as truck fuel. Numerous LNG filling stations are currently under construction in Germany. In addition, the German Federal Government supports logistics companies with subsidies and the toll-free use of German roads for LNG-powered trucks.
With its proximity to the Jade Weser Port, Bremerhaven and the German Bight, Wilhelmshaven is a very suitable location to supply LNG for all downstream markets and in particular for marine fuels, the statement reads.
The market for so-called small-scale LNG is gaining in importance, Uniper said, adding that as a fuel, LNG already meets the more stringent environmental requirements for ocean shipping.
Uniper is currently developing an FSRU terminal at its Wilhelmshaven site. The FSRU will have a natural gas send-out capacity of 10 billion cubic meters per year and an LNG storage capacity of more than 263,000 cubic meters.
The terminal is scheduled to go into operation in the second half of 2022.
In Wilhelmshaven, Uniper can use existing infrastructure. It is the only German site with a deep-water port and can be reached without tidal constraints.
In December 2018, Uniper signed a memorandum of understanding with the Japanese shipping company Mitsui O.S.K. Line (MOL), that will own, finance and operate the FSRU.
Uniper is currently coordinating the permits for the operation of the facility with the relevant authorities.