Currently, Germany has no significant LNG market. Except for minor bunkering facilities, LNG infrastructure is non-existent.
Market driver: Germany’s Energiewende (“Energy Transition”) and the country’s ambitious climate goals, necessitate the construction of additional gas infrastructure. German Government and EU Legislature view investments in Natural Gas infrastructures as a priority.
With coal-fired and nuclear power phase-out and strong demand for clean mobility solutions, domestic gas demand is predicted to experience continued growth through 2040.
By requiring Transmission System Operators (TSO) to foot 90% of the grids connection costs, governmental regulators (June 2019) have confirmed Germany’s political pledge to establish large scale feed-in infrastructure domestically.
With large-scale LNG (import terminals with pipeline feed-in) maritime delivery the following LNG market segments should attract investment: bunker supply (bunker barge, road tanker, rail bunker), LNG depot (inland port, refueling station, peak-shaving storage, small-scale liquification), off grid (local regasification, virtual pipeline), LNG fuels (heavy road and mining, maritime vessels and marine APU, inland barges).
Germany is facilitating small-scale LNG investments with incentives aimed at diversifying German LNG demand.