ECONOMY

Germany signs deal with Greek shipper in bid to reduce reliance on Russian gas

Germany signs deal with Greek shipper in bid to reduce reliance on Russian gas

The German federal government has chartered two floating storage and regasification units (FSRU) from a Greek-owned shipping company that are expected to play an important part in the country’s efforts to reduce its reliance on Russian energy.

Chartered from George Prokopiou’s Dynagas Ltd via the Dusseldorf-based energy company Uniper, the Transgas Power and Transgas Force tankers are expected to set course for Germany later this year, and once operational are seen providing a total capacity equivalent to 30% of Russian gas imports to Germany.

“We have long been advocating for European countries to develop LNG import infrastructure to diversify their sources of supply of natural gas. The installation of the two FSRUs will enable Germany, and the wider European region, to significantly increase their LNG import capabilities in a timely and environmentally friendly manner without any permanent footprint on-shore,” Uniper quoted George Prokopiou, the 76-year-old founder and president of Dynagas, as saying. 

“We look forward to the FSRUs being installed in Germany and supplying the country with natural gas which, ultimately, will also enable the transition to a lower carbon future,” he said.

According to Uniper, the Transgas Force and Transgas Power, built in 2021, are among the “most modern, safe and environmentally friendly of their kind with a total natural gas-send-out capacity of up to 7.5 bcm/a and an LNG storage capacity of 174,000 m³ each. The combined capacity is equivalent to approximately 30% of Russian gas imports into Germany.”

“The FSRUs will commence their service early 2023 with first gas send-out depending on the completion of the onshore installations at the sites selected by the German government,” it said in the announcement posted on its website.