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Released June 20, 2022 | GALWAY
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Researched by Industrial Info Resources (Sugar Land, Texas)--As Russia wages war against Ukraine, many European countries that have depended on Russian natural gas are now scrambling for energy security. This effort includes prioritizing a multitude of floating storage and regasification unit (FSRU) projects, along with import terminals and pipelines.
Listed below are projects tracked by Industrial Info throughout Europe that could help wean the continent from Russian natural gas.
Click on the image at right for a chart showing FSRU-related project spending activity in Europe, by country.
In the Baltics, the FSRU terminal has proven to be valuable for Lithuania, as well as neighbouring countries Estonia and Latvia, following the completion of the Balticconnector pipeline between Finland and Estonia. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for related projects. However, following completion of the Gas Interconnector Poland to Lithuania (GIPL) pipeline, it is expected more gas from this terminal will flow to the west. Subscribers can click here for projects linked to the GIPL project.
This motivated Estonia to push for its own FSRU, to be strategically positioned near the Balticconnector pipeline and therefore able to supply Finland as well. Subscribers can click here for projects tied to the Paldiski FSRU.
In nearby Poland, developers are completing the expansion of the Swinoujscie LNG regasification terminal and Baltic Pipe project. Subscribers can click here for projects tied to the Swinoujscie LNG regasification terminal and click here for those tied to the Baltic Pipe. Following some permitting issues, construction also restarted on the onshore section of the pipeline in Denmark -- this will allow Poland to become completely independent from Russian gas imports. It will even give countries like Slovakia an alternative supply route through the nearly completed Slovakia-Poland Interconnector (click here for projects related to this pipeline).
As Europe's biggest consumer of natural gas, Germany is facing much larger issues in shifting away from Russian gas. The completed Nord Stream 2 Pipeline is facing huge opposition to its certification and commissioning. Click here for the Nord Stream 2 projects. To complicate matters, Wintershall Dea GmbH (Kassel and Hamburg, Germany) decided in March to write off its financing of the Nord Stream 2 project, totalling about 1 billion euros (US$1.04 billion). For related information, see March 22, 2022, article - Russia's Nord Stream 2 Pipeline Loses European Investors.
However, Germany has announced the fast-tracking of liquefied natural gas (LNG) import terminal projects, which have been previously delayed. These include the Bruntsbuetel and Stade LNG terminals as well as reactivating a cancelled Wilhemshaven FSRU project that would bridge the construction of Tree Energy Solutions' (Belgium) land-based Wilhemshaven LNG and Hydrogen Import Terminal. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Terminals Project Database can click here for the Bruntsbuetel project reports and here for the Stade LNG reports. Click here for the Wilhemshaven FSRU project reports.
It is unlikely Germany would risk the loss of gas from the 55 billion-cubic-meter-per-year Nord Stream I pipeline as this would result in the collapse of the German chemical industry, one of the most important industries in the country. However, Russia's Gazprom (Saint Petersburg, Russia) last week announced a further cut in the amount of gas it can pump through the Nord Stream 1 pipeline to Europe, a move Germany's economy minister said was aimed at sowing uncertainty and pushing up fuel prices, according to Reuters. The second supply capacity cut means that Nord Stream 1 will run at just 40% capacity.
Norway is investigating options to increase exports to Europe above the technical capacity currently allowed. It also is working hard to restart the 4.3 million-metric-ton- per-year Hammerfest LNG facility to ease the pressure on the market.
The Netherlands also is fast-tracking an FSRU barge project in the Eemshaven Port and is completing construction of a land-based import terminal. Also, Gasunie (Groningen, Netherlands) is considering an expansion of the Maasvlakte Gate LNG Terminal to 20 billion cubic meters per year beyond the already-approved expansion to 13.5 billion cubic meters per year. Subscribers can learn more about the Eemshaven Port FSRU by clicking here, and can click here for the Maasvlakte Gate LNG Terminal expansion project report.
The United Kingdom is expanding the Isle of Grain LNG Terminal as well as potentially expanding the South Hook Terminal. The UK is less exposed to supply uncertainties due to its domestic production. It also has a substantial amount of energy from wind and nuclear power, thus reducing its reliance on natural gas. Subscribers can click here for the Grain Island LNG project report and click here for the South Hook Terminal project report.
France also is pushing for long-delayed LNG terminal expansions. However, France is a nuclear power stronghold and the LNG regasification expansions would mostly serve neighbouring countries. Subscribers can click here for France's regasification project reports.
Spain has an abundance of LNG regasification capacity. It even has an LNG terminal that was mothballed immediately after its completion. However, Spain has poor natural gas interconnections with the rest of Europe. There are talks to restart the recently cancelled MIDCAT Interconnector Project that would allow Italy to import more gas from the regasification terminals in Spain through French territory, as well as parallel plans to build a direct subsea interconnector between Spain and Italy. Subscribers can click here for the MIDCAT Interconnector project reports.
Italy, another big consumer of natural gas in Europe, has the advantage of connections to natural gas resources in North Africa (Algeria, Tunisia, Egypt). Increases in North Africa's export capacity are under consideration. Eni S.p.A (NYSE:E) (Rome, Italy) is a long-time investor in the African oil and gas market; its investments seem to be paying off with working interests in several LNG projects that are planned to be brought online this year.
Also, three new FSRUs in Italy are in the advanced permitting stages. In addition, ENI is looking into how to increase domestic production by as much as 10 billion cubic meters per year in the short-to-medium term in order to reduce Russian imports by the end of 2023.
Croatia is pretty much self-sufficient, following the completion of the KRK FSRU, even with a small export capacity. Subscribers can click here for the KRK plant profile.
Greece is developing a new FSRU in Alexandroupolis, with consideration of a nearby second FSRU. It also is working on detailed plan to double the capacity of the TAP Pipeline System to 20 billion cubic meters per year. Subscribers can click here for the Alexandroupolis FSRU project reports.
It is expected that the expensive Eastmed Pipeline will get stronger support in the current market environment. Click here for the related project reports.
Romania is progressing with its Midia Offshore Development, which together with its onshore production, will allow for some limited exports. Click here for related project reports.
Bulgaria will have access to the TAP pipeline via IGB Interconnector, enabling the country to offset the Russian imports somewhat, but not completely. Bulgaria is likely to continue to import Russian gas at least until the TAP is expanded to its full capacity. Subscribers can click here to learn more about the IGB Interconnector.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of the detailed project reports cited in this article and can click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Listed below are projects tracked by Industrial Info throughout Europe that could help wean the continent from Russian natural gas.
In the Baltics, the FSRU terminal has proven to be valuable for Lithuania, as well as neighbouring countries Estonia and Latvia, following the completion of the Balticconnector pipeline between Finland and Estonia. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for related projects. However, following completion of the Gas Interconnector Poland to Lithuania (GIPL) pipeline, it is expected more gas from this terminal will flow to the west. Subscribers can click here for projects linked to the GIPL project.
This motivated Estonia to push for its own FSRU, to be strategically positioned near the Balticconnector pipeline and therefore able to supply Finland as well. Subscribers can click here for projects tied to the Paldiski FSRU.
In nearby Poland, developers are completing the expansion of the Swinoujscie LNG regasification terminal and Baltic Pipe project. Subscribers can click here for projects tied to the Swinoujscie LNG regasification terminal and click here for those tied to the Baltic Pipe. Following some permitting issues, construction also restarted on the onshore section of the pipeline in Denmark -- this will allow Poland to become completely independent from Russian gas imports. It will even give countries like Slovakia an alternative supply route through the nearly completed Slovakia-Poland Interconnector (click here for projects related to this pipeline).
As Europe's biggest consumer of natural gas, Germany is facing much larger issues in shifting away from Russian gas. The completed Nord Stream 2 Pipeline is facing huge opposition to its certification and commissioning. Click here for the Nord Stream 2 projects. To complicate matters, Wintershall Dea GmbH (Kassel and Hamburg, Germany) decided in March to write off its financing of the Nord Stream 2 project, totalling about 1 billion euros (US$1.04 billion). For related information, see March 22, 2022, article - Russia's Nord Stream 2 Pipeline Loses European Investors.
However, Germany has announced the fast-tracking of liquefied natural gas (LNG) import terminal projects, which have been previously delayed. These include the Bruntsbuetel and Stade LNG terminals as well as reactivating a cancelled Wilhemshaven FSRU project that would bridge the construction of Tree Energy Solutions' (Belgium) land-based Wilhemshaven LNG and Hydrogen Import Terminal. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Terminals Project Database can click here for the Bruntsbuetel project reports and here for the Stade LNG reports. Click here for the Wilhemshaven FSRU project reports.
It is unlikely Germany would risk the loss of gas from the 55 billion-cubic-meter-per-year Nord Stream I pipeline as this would result in the collapse of the German chemical industry, one of the most important industries in the country. However, Russia's Gazprom (Saint Petersburg, Russia) last week announced a further cut in the amount of gas it can pump through the Nord Stream 1 pipeline to Europe, a move Germany's economy minister said was aimed at sowing uncertainty and pushing up fuel prices, according to Reuters. The second supply capacity cut means that Nord Stream 1 will run at just 40% capacity.
Norway is investigating options to increase exports to Europe above the technical capacity currently allowed. It also is working hard to restart the 4.3 million-metric-ton- per-year Hammerfest LNG facility to ease the pressure on the market.
The Netherlands also is fast-tracking an FSRU barge project in the Eemshaven Port and is completing construction of a land-based import terminal. Also, Gasunie (Groningen, Netherlands) is considering an expansion of the Maasvlakte Gate LNG Terminal to 20 billion cubic meters per year beyond the already-approved expansion to 13.5 billion cubic meters per year. Subscribers can learn more about the Eemshaven Port FSRU by clicking here, and can click here for the Maasvlakte Gate LNG Terminal expansion project report.
The United Kingdom is expanding the Isle of Grain LNG Terminal as well as potentially expanding the South Hook Terminal. The UK is less exposed to supply uncertainties due to its domestic production. It also has a substantial amount of energy from wind and nuclear power, thus reducing its reliance on natural gas. Subscribers can click here for the Grain Island LNG project report and click here for the South Hook Terminal project report.
France also is pushing for long-delayed LNG terminal expansions. However, France is a nuclear power stronghold and the LNG regasification expansions would mostly serve neighbouring countries. Subscribers can click here for France's regasification project reports.
Spain has an abundance of LNG regasification capacity. It even has an LNG terminal that was mothballed immediately after its completion. However, Spain has poor natural gas interconnections with the rest of Europe. There are talks to restart the recently cancelled MIDCAT Interconnector Project that would allow Italy to import more gas from the regasification terminals in Spain through French territory, as well as parallel plans to build a direct subsea interconnector between Spain and Italy. Subscribers can click here for the MIDCAT Interconnector project reports.
Italy, another big consumer of natural gas in Europe, has the advantage of connections to natural gas resources in North Africa (Algeria, Tunisia, Egypt). Increases in North Africa's export capacity are under consideration. Eni S.p.A (NYSE:E) (Rome, Italy) is a long-time investor in the African oil and gas market; its investments seem to be paying off with working interests in several LNG projects that are planned to be brought online this year.
Also, three new FSRUs in Italy are in the advanced permitting stages. In addition, ENI is looking into how to increase domestic production by as much as 10 billion cubic meters per year in the short-to-medium term in order to reduce Russian imports by the end of 2023.
Croatia is pretty much self-sufficient, following the completion of the KRK FSRU, even with a small export capacity. Subscribers can click here for the KRK plant profile.
Greece is developing a new FSRU in Alexandroupolis, with consideration of a nearby second FSRU. It also is working on detailed plan to double the capacity of the TAP Pipeline System to 20 billion cubic meters per year. Subscribers can click here for the Alexandroupolis FSRU project reports.
It is expected that the expensive Eastmed Pipeline will get stronger support in the current market environment. Click here for the related project reports.
Romania is progressing with its Midia Offshore Development, which together with its onshore production, will allow for some limited exports. Click here for related project reports.
Bulgaria will have access to the TAP pipeline via IGB Interconnector, enabling the country to offset the Russian imports somewhat, but not completely. Bulgaria is likely to continue to import Russian gas at least until the TAP is expanded to its full capacity. Subscribers can click here to learn more about the IGB Interconnector.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of the detailed project reports cited in this article and can click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
