German LNG Terminal starts EPC prequalification process

Potential EPC contractors announcing their interest to participate in the project on or before 1^stJuly 2019 will receive a pre-qualification package.

Binding (lump-sum) offers will have to be prepared and submitted by pre-qualified bidders between August and October 2019. The winning bidder(s) will be announced during the first quarter of 2020, followed by the release of an early (or limited) notice to proceed to commence scheduled early activities.

German LNG Terminal GmbH is a joint venture of Dutch companies Vopak and Gasunie, as well as German company Oiltanking, part of Marquard & Bahls AG. They combine considerable expertise in gas and LNG storage and handling, pipeline and terminal operations as well as a firm commitment to build Germany’s first LNG terminal.

Vopak and Gasunie have already successfully joined forces to build and operate the GATE terminal in Rotterdam.

The joint venture plans to build, own and independently operate a combined import and distribution LNG terminal in Brunsbuettel, Northern Germany. The terminal’s business model is characterised by the provision of multi-purpose services, as well as open access to terminal capacity.

The project experienced a big breakthrough in early May when Swiss-based international energy trading company Axpo signed a Heads of Agreement with German LNG Terminal GmbH for a long-term capacity contract for the LNG terminal. This was considered an important step towards achieving the final investment decision for the construction of the terminal.

One step closer: Axpo and German LNG Terminal sign agreement

Now the project has taken the next step forward, with the EPC pre-qualification process set to begin.

Brunsbuettel benefits from several advantages, namely its location near the North Sea along the Elbe river, close to the Kiel Canal and enabling easy access to markets in North-West Europe, Scandinavia and the Baltics, as well as its close proximity to the port of Hamburg and the associated LNG bunkering potential, and its location within the ChemCoast Park that includes industrial customers with high energy needs.

The location also has the strong support of both local and regional government, while the German federal government supports an LNG terminal as it contributes to gas supply diversification and provides efficient supply chains for LNG as an alternative fuel.

The market’s reaction to the Brunsbuettel terminal project has also been positive, gasworld understands, with interest from future customers reflected in the execution of several Heads of Agreements. The application for exemption from regulated third party access and the permit application are based on 8 bcma terminal capacity.

German LNG Terminal: Planning at advanced stage

It is envisaged that up to four EPC Contractor entities will be pre-qualified to enter the competitive tender process. Experience in design and construction of similar projects and awareness of German codes and practices will be essential attributes to pre-qualify, besides financial strength and safety track record.

The winning EPC entity (party, or JV or consortium) can expect to receive a full notice to proceed some six months after ENTP, and will have approximately three years from ENTP to complete the base scope terminal, inclusive site preparation, waterfront with new jetty, LNG storage and all normal process equipment and supporting infrastructure for an LNG terminal.

The EPC Contractor will have to deliver a fully functional terminal and successfully conduct commissioning tests before hand-over to German LNG Terminal for commercial operations.