Euroil: Fluxys joins German LNG efforts

Belgium’s Fluxys has signed up to be an “industrial partner” at the planned Stade LNG import terminal in Northern Germany, taking the ambitious project a step closer towards realisation.

Stade LNG is the biggest of several LNG import schemes in Germany, which already has access to a diversified mix of gas supplies but is looking to strengthen its position as a hub for central Europe. The terminal is expected to receive up to 12bn cubic metres per year of gas beginning in 2026. It is also the German terminal project that is arguably most likely to succeed at the moment.

While project developer Hanseatic Energy is yet to take a final investment decision (FID) on the scheme, the non-binding phase of an open season for the terminal’s capacity that was finished in mid-February confirmed sufficient market interest, Hanseatic has said. The binding stage will commence sometime in the next three months.

Fluxys did not specify exactly how it would contribute towards Stade LNG. The company’s entry into the project comes after private equity firm Partners Group made an investment in Hanseatic in December.

Meanwhile in Norway, Equinor and its partners at the Asgard gas field in the Norwegian Sea have signed off on a NOK1.4bn ($164mn) investment, to help recover an extra 400-500mn barrels of oil equivalent (boe) from the project.

The Asgard field started flowing oil and gas in 1999 and output has been in steady decline since 2013, extracting 6.61 bcm of gas and 66,500 barrels per day (bpd) last year. The Asgard B low-pressure project aims to increase the field’s recovery rate from under 50% at present to 60%, by raising output at the current Smorbukk wells. The Asgard B platform will be modified to reduce inlet pressure by replacing the reinjection compressors and rebuilding parts of the processing facility.

If you’d like to read more about the key events shaping Europe’s oil and gas sector then please click here for NewsBase’s EurOil Monitor.