LNG terminal in Germany asks for justice: state terminals are dumping

The operator and owner of a private LNG terminal in Germany, Deutsche ReGas, said that state-owned terminals are dumping and pose a threat to its business. The German government is at a crossroads: gas prices remain high and Berlin needs to stimulate imports amid a sharp depletion of storage facilities this winter.

"Since Christmas 2024, we have been facing unequal competition with DET (Deutsche Energy Terminal)," ReGas CEO Ingo Wagner told reporters, Reuters reports. According to him, the rules of the federal land prohibit offering services at prices below cost, while the state operator does it.

The first LNG terminals in Germany began to appear at the end of 2022, when Russian gas supplies to the country stopped due to sanctions and counter-sanctions. The German government has invested in two terminals — in Brunsbuttele and Wilhelmshaven. In turn, the German ReGas and the French TotalEnergies organized a floating terminal in Mukran, where the Nord Streams come out.

According to GIE, in 2024, the load of state terminals was much higher than in Mukran. In Brunsbuttel and Wilhelmshaven, it was 65-64%, and in Mukran — 8.5%.

This situation can be explained not only by prices, but also by the fact that the German government nationalized and took control of the largest importers of fuel to the country — SEFE (formerly Gazprom Germania) and Uniper.

ReGas stated that they could not meet the price levels of state terminals. Their operator told Reuters that short-term auctions in December helped ensure the security of supplies at all times amid muted interest in booking.

"We comply with regulatory requirements for the marketing of regasation capacity for our terminals," said a DET spokesman.

Deutsche Energy Terminal reports that it will hold several auctions in early February and the starting price for booking a mandatory shipment starts at $ 17 per thousand cubic meters. At the same time, Deutsche ReGas reports a tariff of $ 20 per thousand cubic meters, excluding variable and operating fees.

More than three years have passed since the beginning of the energy crisis. However, Europe and Germany itself continue to be under pressure from high gas prices. If in the pre-crisis five-year period fuel was sold on two gas exchanges of the country for an average of $ 180, now quotes exceed $ 500. This winter turned out to be colder and windless than the previous two, and traders are actively depleting the country's storage facilities. By January 29, there were 13.6 billion cubic meters in them — the lowest figure since 2022. The difference from last season's figures is about 5 billion cubic meters.

In such a situation, the German government is trying to stimulate gas imports, including terminal prices. In January, the operator of the German stock exchange, THE, announced that Berlin was ready to financially support the injection of gas by traders for the next season.

At the same time, Germany may not exclude the resumption of Russian gas supplies. Russian President Vladimir Putin spoke about such a possibility if a political decision is made in Germany. After the sabotage on September 26, one line of Nord Stream—2 with a capacity of 27.5 billion cubic meters per year remained on Nord Streams in the Baltic Sea. The Financial Times reported that discussions have begun in Europe about the possibility of resuming supplies from Russia to lower gas prices and make a move to meet Russia for negotiations on the Ukrainian conflict. The publication noted that the idea is supported by German officials.