Germany ready for winter with 'speedy' new gas terminal tapping global market


Tim Stickings
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Europe’s newest weapon in what it calls an energy war with Russia was built at such speed that one engineer, Folker Kielgast, choked up in tears as he saluted his comrades.

Just 194 days after work began, Germany’s first maritime gas terminal is ready to receive its first shipment.

It opens the door to gas imports from all over the world — a big step in breaking free from Russia.

“We are becoming independent. We will not let ourselves be blackmailed, and we stand by Ukraine without relying on third parties for gas,” said Olaf Lies, a local politician closely involved with the project in Wilhelmshaven.

The pier at Wilhelmshaven is one of two in Germany hurriedly set up to receive liquefied natural gas by ship.

At Wilhelmshaven, it will be converted back into gas and piped into the 511,000km German gas network to help keep the lights on this winter.

The National was on board the motor boat Fair Lady as people behind the project took a celebratory ride to the terminal on Tuesday.

Over seafood and fried eggs, they savoured what Mr Lies called a “new German speed” in a country with a reputation for no-shortcuts bureaucracy.

While environmentalists have a list of objections almost as long as the 350m pier, there is hope that the same can-do attitude will now be applied to clean energy.

“It means realising projects in a space of time that we in Germany could not have imagined in years and decades gone by,” Mr Lies said.

An aerial view of the LNG terminal at Wilhelmshaven. Photo: NPorts/Wolfhard Scheer
An aerial view of the LNG terminal at Wilhelmshaven. Photo: NPorts/Wolfhard Scheer

Shadow of war

Holger Banik, the head of port operator NPorts, said he wished it had not taken Russia invading Ukraine to finally make the terminal happen.

Wilhelmshaven was identified as a possible site as early as the 1970s but the project could never get off the ground.

While other countries built LNG terminals, energy company Uniper shelved the Wilhelmshaven idea in 2020, saying the market conditions were not suitable.

As late as October 2021, German officials wrote a now-infamous report saying yet more Russian gas was the way forward.

Only in February 2022 did Chancellor Olaf Scholz abandon the Russian-owned Nord Stream 2 pipeline and turn towards LNG.

About 30 to 40 engineers worked on the Wilhelmshaven terminal every day from May onwards, building 194 pylons and pouring 3,000 cubic meters of concrete.

“It was a super effort from you all,” said the tearful Mr Kielgast.

Ministers chartered ships to act as floating regasification units, such as the Hoegh Esperanza in Wilhelmshaven, until permanent facilities are built on land.

The first LNG shipment is expected to arrive in Wilhelmshaven in mid-December and ease the strain on Germany’s energy grid.

A second terminal at Brunsbuettel is due to start operating around the same time. Others are still in progress and should come online in 2023.

The US, Australia and Qatar are among the potential LNG suppliers to Germany, which can forward gas to its European neighbours.

Uniper believes the extra gas could help prevent blackouts this winter and stabilise the European energy market.

“We expect the imports to have a positive effect on the German gas market,” Christian Janzen, a technical director at Uniper, told The National on the deck of the Fair Lady.

“We believe it will make a significant contribution to energy security.”

Germany is entering winter with its gas tanks almost 100 per cent full after an unseasonably warm October.

But its problems will be far from over in the spring, with politicians already looking nervously ahead to the winter of 2023/24.

Germany had many months of Russian supplies this year before Moscow turned off the tap, which it is unlikely to enjoy next year.

Direct LNG imports will be able to cover about a third of Germany’s gas needs by next winter, it is hoped.

However, the combined 25 billion cubic metres of annual gas capacity provided by five planned LNG terminals is still below the 55 billion in Nord Stream 1.

With every gas shipment precious, Mr Janzen said security would be high at the Wilhelmshaven terminal.

But he would not say whether security was tightened after the apparent sabotage attacks on Nord Stream 1 and 2.

Politicians and people involved with the LNG project take a boat ride to the terminal in Wilhelmshaven, Germany. Tim Stickings/The National
Politicians and people involved with the LNG project take a boat ride to the terminal in Wilhelmshaven, Germany. Tim Stickings/The National

Climate concerns

Many climate activists are not celebrating. They see LNG as a backward step when Germany is meant to be consigning fossil fuels to history.

“What has Germany achieved this year? Gas, gas, gas,” and extra coal and nuclear power, said Elisabeth Staudt of Environmental Action Germany.

It comes at a time when condemned coal plants are being reactivated and nuclear reactors kept on the grid for longer than planned.

Another complaint is that gas imported from the US is likely to come from fracking, a process many activists dislike.

Then there are concerns for local wildlife, with environmentalists alarmed about water contamination near a national park.

Vice Chancellor Robert Habeck brushed aside fears for local porpoises despite insisting he was the “biggest porpoise fan in the government”.

Those behind the Wilhelmshaven project insist it is not incompatible with Germany’s green goals.

German Economy Minister Robert Habeck was present when construction began at Wilhelmshaven on May 5. Reuters
German Economy Minister Robert Habeck was present when construction began at Wilhelmshaven on May 5. Reuters

The vision of Mr Scholz and others is that LNG terminals should one day be converted into green hydrogen hubs.

On the day politicians showed off the Wilhelmshaven pier, Germany announced €550 million ($572 million) of new funding for hydrogen.

“The example of Wilhelmshaven shows that Germany can be quick and move infrastructure projects forward with great resolve,” said Mr Habeck.

A recent report by a scientific institute cast doubt on whether conversion for hydrogen would work.

Mr Janzen said it would be the middle or the end of the decade by the time green ammonia, used to make hydrogen, arrives in Wilhelmshaven.

Mr Lies conceded that politicians had lessons to learn about how to communicate with concerned voters.

But “we are not taking a step backwards to a fossil fuel era,” he said as the motor boat approached the terminal.

“Let’s take what we’ve achieved — building infrastructure at high speed, showing people in Germany that we can do it — and translate it to other projects that we have, to climate change, to the transformation of industry, to the path out of fossil fuels and into renewable energy.”

LEADERBOARD
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War and the virus

Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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Young women have more “financial grit”, but fall behind on investing

In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.

While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.

In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all). 

“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”

Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.

"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."

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Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

The%20specs
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Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.

 

 

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World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

About Karol Nawrocki

• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.

• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.

• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.

• Met Donald Trump at the White House and received his backing.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The biog

DOB: March 13, 1987
Place of birth: Jeddah, Saudi Arabia but lived in Virginia in the US and raised in Lebanon
School: ACS in Lebanon
University: BSA in Graphic Design at the American University of Beirut
MSA in Design Entrepreneurship at the School of Visual Arts in New York City
Nationality: Lebanese
Status: Single
Favourite thing to do: I really enjoy cycling, I was a participant in Cycling for Gaza for the second time this year

RoboCop%3A%20Rogue%20City
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The biog

Family: He is the youngest of five brothers, of whom two are dentists. 

Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.

Where he works: Liberty Dental Clinic 

The biog

Fatima Al Darmaki is an Emirati widow with three children

She has received 46 certificates of appreciation and excellence throughout her career

She won the 'ideal mother' category at the Minister of Interior Awards for Excellence

Her favourite food is Harees, a slow-cooked porridge-like dish made from boiled wheat berries mixed with chicken

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Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Updated: November 16, 2022, 1:57 PM