Seven questions about LNG and the continued use of EemsEnergyTerminal

The terminal was built in record time in 2022 as a response to the loss of gas coming from Russia and the immediate need for additional import capacity. What started as a temporary crisis solution now appears to be needed for longer. GTS's resilience analysis shows that the Netherlands and Europe are increasingly dependent on LNG imports to manage fluctuations in supply and demand.

The energy situation has become less predictable, and LNG plays a pivotal role in this. As a result, EemsEnergyTerminal contributes to energy security for the Netherlands and north-western Europe, also in the medium term.

EemsEnergyTerminal is a floating LNG plant consisting of two so-called FSRUs (Floating Storage and Regasification Units). LNG vessels supply liquefied gas, which is heated up in this plant to produce natural gas in gaseous form. This gas is fed directly into the Dutch national gas grid, making it available to households, power plants and industry. Each year, the terminal processes LNG from dozens of vessels. EemsEnergyTerminal is a subsidiary of Gasunie and Vopak.

LNG makes it possible to purchase natural gas worldwide and transport it to Europe by ship from countries like the United States. Cooling natural gas down to about -162°C turns it into a liquid, which greatly reduces its volume and makes it possible to transport it by sea. This creates additional supply routes for natural gas and makes the energy system less dependent on pipelines and specific countries.

It means that the terminal will remain operational after the end of the original contract period in 2027, with continued operations planned until 2036. Not only will the infrastructure and installations continue to be used; they will also be modified and optimised for long-term use. As a result, the terminal will develop from a temporary emergency facility into a facility that can also contribute to energy security in the medium term.

The cFID means that Gasunie and Vopak have now started implementing the project and are taking investment steps to be ready in time to continue operations in 2028. This decision anticipates the granting of the final permit. There is enough confidence in the need of the terminal, but obtaining the permit remains a necessary milestone for the project. Preparations can now continue, even though issuance of the permit remains a precondition.

The government focuses a lot on energy security within our energy supply system. EemsEnergyTerminal provides an important contribution to this. This is why, two-and-a-half years ago, partly at the government’s request, Gasunie and Vopak started looking into the possibility of extending its operations after 2027. The result was this decision to keep the terminal operational until 2036. The government played a major role in the early timing of the cFID, specifically by providing guarantees for part of the remaining project risks.

For the 2028–2036 period, contracts have been signed with several parties that will be supplying LNG to the terminal, covering a significant part of its capacity. Current international developments are creating considerable uncertainty on the market and a reluctance to sign long-term contracts. This decision constitutes an important step towards guaranteeing the availability of LNG supply capacity for the Netherlands.

For the Netherlands and north-western Europe, it means that the existing capacity of about 8 billion cubic metres of gas per year remains available and will be expanded to about 8.6 billion cubic metres, which is around one quarter of our national gas consumption. The terminal will, therefore, remain a key link in the supply of energy. Together with Gate terminal at the Maasvlakte industrial area and the German LNG terminal in Brunsbüttel, EemsEnergyTerminal will contribute to a reliable system for gas import and energy security.

You can read more about this conditional investment decision on the EemsEnergyTerminal website.