The Gate LNG import terminal has its first taker for renewable natural gas (RNG) liquefaction capacity at the Netherlands hub as Germany’s largest importer of the super-chilled fuel looks for opportunities to offset its shipping business.
Uniper SE disclosed it has started using Gate’s capacity to create liquefied natural gas from RNG, often referred to as bio LNG in Europe, to lower emissions from its shipping business.
“The decarbonization of the market for marine and truck fuels will require the use of several low to zero-carbon fuels,” Chief Commercial Officer Carsten Poppinga said. “Bio LNG is among the most important ones. It will contribute to meeting the emission reduction targets of the International Maritime Organization for seagoing vessels, including Uniper’s own LNG fleet.”
Gate’s bio LNG liquefier is capable of producing around 100,000 tons/year of the super-chilled fuel from gas captured from organic waste. RNG supplies from several European Union member states are delivered to Gate through the Dutch gas grid and liquefied using the terminal’s existing infrastructure.
While a few other European import terminals outrank Gate in capacity, it is traditionally the most utilized LNG hub on the continent. More than 11.6 million metric tons (mmt), a new yearly high, were received at Gate last year, according to Kpler data. Almost two-thirds of those LNG volumes came from the United States.
Gate was approved under the International Sustainability and Carbon Certification system as a responsible RNG storage facility and bio LNG producer in 2021, but has not found an LNG trader to utilize the capacity until now.
As Uniper continues to shift its long-term business to include more LNG supplies, especially from the United States, its gas supply chain and maritime shipping footprints are a large part of its decarbonization goals, according to the company.
Uniper has targeted replacing 80% of its generating capacity with hydro, nuclear, net-zero gas, natural gas and renewables by 2030. It also plans to end coal-fired power generation by 2029.
The company is aiming for 5-10% of its portfolio to consist of what it calls green gasses, which include net-zero RNG and hydrogen, by 2030. After the end of the decade, Uniper plans to repurpose some of its existing natural gas storage facilities for hydrogen storage.
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In early July, Germany’s government approved a hydrogen import strategy and outlined market logistics and proposed supply sources for the estimated 95-120 terawatt hours (TWh) worth of hydrogen the country may require by next decade. By 2045, hydrogen consumption may expand to 360-500 TWh, which is expected to be met mostly by imports.
Before Russia’s 2022 invasion of Ukraine, Germany relied on Russian pipeline supply to meet more than 50% of its gas demand.
As the largest gas supplier in the largest gas buying nation in Europe, Uniper incurred massive losses as Europe’s gas prices erupted and it sought more expensive LNG cargoes to cover dwindling Russian pipeline supply. The company was later nationalized as a part of a bailout by the German government.
Uniper ended decades-long supply contracts with Gazprom PJSC in June after an arbitration court sided with the Germany company. Uniper was awarded more than $14 billion in damages for costs incurred replacing undelivered Russian supplies since late 2022.
Since then, Uniper has transitioned from importing its first direct cargo in 2022 to the seventh largest LNG buyer in Europe. It imported more than 4.5 mmt last year, almost entirely from the United States, according to Kpler data.
