Germany’s Deutsche ReGas Terminates Charter Deal Amid LNG Terminal Pricing Dispute

Germany’s private operator of liquefied natural gas (LNG) terminals, Deutsche ReGas, has decided to terminate a charter deal for one of the floating storage and regasification units (FSRUs) at the ‘Deutsche Ostsee’ energy terminal in Mukran.

The FSRU Energos Power, sub-chartered to Deutsche Regas, was acquired from affiliates of Dynagas in January 2024. Both FSRUs secured long-term charter contracts with the German Federal Ministry of Economic Affairs and Climate Change, with Energos Force destined for Stade and Energos Power set to operate in Mukran.

Deutsche ReGas made the decision to terminate the charter contract with the Federal Ministry for Economic Affairs due to pricing disputes with Deutsche Energy Terminal (DET). DET’s pricing policy led to market distortion in Germany, prompting the termination of the sub-charter contract for the FSRU Energos Power.

Ingo Wagner, Managing Partner of Deutsche ReGas, expressed regret over the necessity to terminate the contract, citing DET’s pricing policy as a key factor. Wagner mentioned ongoing consultations with the German government and assured that ReGas would provide a solution in case of a supply shortage.

DET celebrated its 100th LNG shipment in August 2024, with 165,000 cubic meters of LNG arriving at the Wilhelmshaven 1 terminal. The company highlighted the importance of the LNG cargo in strengthening energy security for Germany and its European neighbors.

Out of the 100 deliveries, 71 were at Wilhelmshaven and 29 at Brunsbüttel, while the Stade and Wilhelmshaven 2 terminals operated by DET were yet to commence operations.