Germany’s private operator of liquefied natural gas (LNG) terminals, Deutsche ReGas, has pulled the plug on a charter deal for one of two floating storage and regasification units (FSRUs) currently operating at the ‘Deutsche Ostsee’ (German Baltic Sea) energy terminal in Mukran.
The FSRU Energos Power , sub-chartered to Deutsche Regas, is one of the units Energos Infrastructure acquired from affiliates of Dynagas in January 2024. Both units secured long-term charter contracts with the German Federal Ministry of Economic Affairs and Climate Change, with the FSRU Energos Force destined for the port of Stade under the direction of Deutsche Energy Terminal (DET), and the FSRU Energos Power set to operate in the port of Mukran.
Deutsche ReGas decided to terminate the charter contract with the Federal Ministry for Economic Affairs for the 174,000-cubic meter (bcm) FSRU Energos Power after DET reportedly began from December 2024 to systematically market its capacities for the regulated LNG terminals at prices significantly below the cost-covering fees approved by the German Federal Network Agency, leading to significant market distortion in Germany.
Ingo Wagner , Managing Partner of Deutsche ReGas, commented: “DET’s ruinous pricing policy since December 2024 is one of several reasons for terminating the sub-charter contract. Deutsche ReGas regrets being forced to take this step.
“We continue to closely consult with the German government in this regard. In the event of a supply shortage, an immediate solution can be found at any time from ReGas’s perspective.”
DET got its 100th LNG shipment in August 2024, when 165,000 cubic meters of LNG for the German market came to the Wilhelmshaven 1 terminal. The operator expected the LNG cargo to strengthen energy security for Germany and its European neighbors.
The company explained that 71 out of the 100 deliveries were at Wilhelmshaven and 29 at Brunsbüttel , the country’s other functioning LNG terminal, as the two other LNG terminals the firm operates, Stade and Wilhelmshaven 2 , were yet to start operation.