**Germany’s Private LNG Terminal Operator Raises Concerns Over State Competition**
MUKRAN, Germany, Jan 30 – Deutsche ReGas, a private operator of liquefied natural gas (LNG) terminals in Germany, has expressed concerns that the lower prices offered by the state-owned Deutsche Energy Terminal (DET) to attract buyers pose a significant threat to its business. As Germany seeks to enhance its LNG regasification capacity to compensate for the loss of pipeline gas from Russia, the urgency has increased.
In response, floating storage and regasification units (FSRUs) have been rapidly constructed at various coastal sites. However, with underground gas storage facilities in Europe nearing capacity and an oversupply of LNG terminals, attracting shipments to the new infrastructure has become increasingly challenging.
“Since Christmas 2024, we have been facing unequal competition with DET,” stated ReGas CEO Ingo Wagner, highlighting that regulations require DET to offer slots at prices that do not fall below their costs. ReGas argues that DET, backed by state subsidies, can afford to set prices below the minimum required for cost recovery, a strategy that ReGas, as a private entity, cannot match.
The Deutsche Ostsee terminal operated by ReGas is the sole facility in the Baltic Sea and plays a vital role in supplying gas to countries like the Czech Republic and Slovakia, which are adjusting their pipeline routes following the cessation of Russian gas supplies. The recent end of a pipeline agreement between Russia and Ukraine on January 1 has further intensified the focus on LNG exports to Europe, particularly from the U.S.
DET is set to conduct short-term auctions for regasification capacity at its terminals in Wilhelmshaven and Brunsbuettel in the North Sea on February 4, 5, and 6. These operations received approval under European Commission state aid regulations last December. The rapid construction of Wilhelmshaven, Brunsbuettel, and Lubmin, initiated in the winter of 2022, was part of Germany’s emergency response to the reduction of Russian gas supplies following the conflict in Ukraine.
A DET spokesperson stated that the short-term auctions held in December were instrumental in ensuring supply security, despite a lack of significant booking interest. The auctions will cover services related to unloading, regasification, send-out, and storage.
