2022年6月10日
Publication series – 17 / 16 观点
Set against the backdrop of the war in Ukraine and the existing reliance on coal, oil, gas and uranium from Russian production, further expansion and substantial investment in renewable energies is absolutely imperative. Nevertheless, fossil fuels - especially natural gas - are indispensable for a secure energy supply for a transitional period. Germany is committed to reducing its dependence on Russian energy sources as quickly as possible and finding alternative ways to secure its energy supply. The wider public and the Federal Ministry for Economic Affairs and Climate Action (BMWK) are increasingly focussing on liquefied natural gas (LNG) as an energy option. On 19 May 2022, the Bundestag passed the LNG Acceleration Act (LNGG), which is intended to simplify the licensing procedures for liquefied natural gas terminals and associated facilities and the procurement law for LNG projects. Following approval by the Bundesrat on 20 May 2022, the Act came into force on 1 June 2022 but will expire on 30 June 2025.
Our experts Prof. Dr Norbert Kämper and Dr André Lippert address below some of the key issues surrounding LNG in Germany and the LNG Acceleration Act.
Question: Why is the topic of LNG now gaining momentum amongst the public, industry and politics after years of stagnation?
Answer: The BMWK’s Second Energy Security Progress Report shows that Germany has been able to reduce its energy dependence on Russia since the start of the Ukraine war. This applies in particular to its reliance on oil and coal. There is now an import ban on Russian coal and oil at EU level (see also our Insight on the EU Russia sanctions). The dependence on Russian gas has been reduced from 55 per cent to about 35 per cent; around 35 per cent of the national gas demand is covered by Russian imports. A further reduction is urgently needed, not least to prevent a supply crisis. In this context, LNG, or more precisely the procurement of liquefied natural gas from other producing countries, plays a central role. For example, LNG from countries such as the USA or Qatar is to be transported to Germany by ship, landed there, regasified and forwarded. Direct natural gas deliveries by pipeline cannot be expanded in the short term. As early as February, established suppliers such as Norway and the Netherlands indicated that a substantial expansion of supply volumes is not possible.
Question: What challenges are associated with a supply of LNG?
Answer: In order to actually be able to land, regasify and forward LNG in Germany, there is insufficient infrastructure within the country. There are 37 LNG terminals in Europe so far, 26 of which are in EU Member States. However, not a single one of them is located in Germany. This means that LNG has to be procured mainly via terminals in Belgium (Zeebrugge), France (Dunkirk) and the Netherlands. In order to reduce dependence on Russian natural gas as quickly as possible, the German government is now planning the construction of German terminals and, in particular, floating facilities. The floating facilities are to have a combined capacity of up to 27 billion cubic metres of gas which would replace about half of the current Russian supplies.
Question: What role does the LNG Acceleration Act play in this context, which project locations does it affect and what are the essential components?
Answer: The LNGG amends regulations on the authorisation of corresponding terminals and facilitates the award procedures for public contracts relating to their construction (Section 1 LNGG). The LNGG (Section 2 LNGG) applies to
The Annex to the LNGG mentions plants and pipelines in Brunsbüttel (Schleswig-Holstein), Wilhelmshaven and Stade / Bützfleth (Niedersachsen), Hamburg / Moorburg, Rostock / Port and Lubmin (Mecklenburg-Vorpommern) as project locations. The LNGG applies exclusively to these facilities.
The LNGG’s central objective of accelerating LNG projects in Germany is to be achieved primarily through procedural simplifications, such as aspects of the environmental impact assessment, the BImSchG, the BNatSchG and the WHG as well as the EnWG. Some central facilitations regarding procedure concern the following areas:
Question: What are the core elements of the facilitated public procurement procedure for the construction of LNG terminals?
Answer: The LNGG contains a number of regulations that are intended to speed up award procedures for the construction of LNG terminals. The most important aspects are listed below:
Other key aspects for acceleration also concern the handling of review procedures and the shortening of deadlines throughout the procedure.
Question: What happens next?
Answer: In addition to the development of an LNG infrastructure that is also compatible with green hydrogen, a comprehensive expansion of renewable energies and thus a significantly accelerated energy transition is still essential. The financial resources needed for a comprehensive and rapid expansion of the LNG infrastructure, not only in Germany, are also an enormous challenge, despite EU support under the RePowerEU plan.
Irrespective of this, LNGG shows that procedural accelerations in infrastructure projects are possible. The rapid realisation of the projects mentioned in the Annex of the LNGG will show how practical the LNGG is.
Accelerating the award of public contracts and concessions could also serve as a blueprint for further energy transition projects in Germany and send a positive signal to investors.
If you have any questions about LNGG, the relevant award procedures and/or special aspects of planning and environmental law we would be delighted to hear from you.
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