A new floating gas “terminal” comprising two huge ships capable of processing imported liquefied natural gas (LNG) and distributing it through the national grid will double the Netherlands’ domestic capacity almost immediately — and allow it to export gas to Germany and the Czech Republic.
In a sign of the pressure on European economies as a result of the war in Ukraine, the tankers docked in the northern Dutch port of Eemshaven last Thursday, received their first delivery of LNG from the US at the weekend, and will be suppling domestic and industrial users by mid-month.
Until now, the only port in the Netherlands with technology capable of receiving and processing LNG was Rotterdam, but the two new vessels can store the gas in liquid form before using heat exchangers operating on seawater to turn it back into gas.
Ships of this type — known as floating storage and regasification units (FSRUs) — are set to revolutionise international gas delivery to such an extent that the European Union is already formulating plans for 19 more at a cost of about €9.5 billion, according to energy think-tank, Ember.
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For the Dutch, that transformation is already at hand. The ships will boost the country’s gas capacity rapidly from 12 to 20 million cubic metres. An expansion at the terminal near Rotterdam will bring that total to 24 million cubic metres.
The Netherlands has typically used about 40 million cubic metres of gas a year. However, that figure has already fallen by a quarter due to the surge in prices as a result of the war.
The Dutch aim to increase their imports of LNG from the US and the Middle East to counteract the dwindling supply from Russia. As a result, they plan to help ease EU reliance on Moscow by chanelling supplies to Germany and to the land-locked Czech Republic as quickly as possible.
“The new floating LNG terminal is an important step for the whole of Europe because this technology will help us phase out our dependence on Russian energy as quickly as possible”, said Dutch energy minister, Rob Jetten.
According to the national grid operator, Gasunie, the Eemshaven LGN project was completed “in record time”. It says the new terminal can be adapted in the future to import green hydrogen — generated by using renewable energy or low-carbon power.
The Dutch lead is already being followed by its neighbours. Germany, which imported more than half its gas by pipeline from Russia before the invasion of Ukraine, is in the process of chartering seven FSRUs, three of which it hopes to have operational this winter.
Finland and Estonia expect to have one jointly in place by the end of the year. France, Greece and Italy are interested but undecided.
The Dutch government established remote Eemshaven as a key economic region in 1968. That smoothed the way for the new LNG terminal in terms of planning and infrastructure.
