Category Archives: Berlin

Germany backs small-scale LNG import terminals despite opposition [my King’s College/EUCERS paper]

Here is my detailed analysis of the decision by Angela Merkel’s government to begin “small-scale” Liquid Natural Gas (LNG) imports to address greenhouse gas emissions and competitiveness issues in Germany’s heavy-road transport and maritime-shipping sectors.  Read it below (via Scribid) or go directly to EUCERS.  [This peer-reviewed paper appears in the King’s College-London, Newsletter of the European Centre for Energy and Resource Security (EUCERS), Issue 77, July 2018.] – Tom O’D.

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Germany’s Real LNG Policy [My BPJ analysis]

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“Natural gas instead of Diesel” © REUTERS/Hannibal Hanschke

My latest at: Berlin Policy Journal (German Council on Foreign Relations), June 28, 2018:

Germany’s Real LNG Policy
Germany’s government has endorsed imports of liquid natural gas for the first time—but not because of Russia and Nord Stream 2. 

The German federal government has decided in favor of building liquid natural gas (LNG) import terminals and infrastructure. In March, Chancellor Angela Merkel’s CDU/CSU-SPD government, in its “coalition contract,” pledged to “Make Germany the site for LNG infrastructure.” This is a notable policy change, because in Germany the opposition to LNG imports and use has been so much stronger than anywhere else in Europe.

The aim of this new endorsement is to reduce maritime and roadway heavy-transport emissions. However, many in Germany argue that using “small-scale” LNG in this way, as a “bridging” fossil fuel, is “wasted investment”. They contend that Energiewende-mandated electric vehicles can and will rapidly de-carbonize heavy transport. Still others oppose LNG imports on the grounds that they would unnecessarily diversify Germany’s gas suppliers with the aim of offsetting increasing reliance on Russian pipeline gas. They insist that Russian pipeline gas has been “historically reliable” and is cheaper for Germany than building large-scale import terminals for LNG.

Though the federal bureaucracy had been advancing this policy change for over a year, top government officials did not make any particular effort to bring the issue to public attention or to drum up support. Accordingly, media and public understanding of the federal government’s motivations has been less than ideal.

Small-Scale Imports for Cleaner Transport

There are two main points to understand. First, the aim of the new policy is clearly to address long-standing environmental and competitiveness problems in German marine and heavy road transport: compared to diesel, LNG as a transport fuel is much cleaner, emits less CO2 and is generally cheaper. Second, the approved small-scale LNG import facilities will not reduce German dependence on Russian pipeline gas, which is used for conventional purposes. The new policy is not intended to reduce dependence on Russian gas and the controversial Nord Stream 2 pipeline, contrary to various press reports.

The first facility to win approval from Berlin (and previously from Brussels) is planned for the North Sea port of Brunsbüttel, near Hamburg. The initial focus on the Hamburg region is logical. From there, LNG can be shipped up the Elbe River as an inland-shipping and road-transport fuel. In addition, there is access to the Kiel Canal, the world’s busiest artificial waterway, where LNG can be used or delivered into Scandinavia and the Baltic region. Hamburg is also Germany’s major container port, and the shipping industry has begun converting engines to LNG fuel globally.

However, as well as facilities for fueling ships and trucks in the immediate port area with liquid natural gas, and shipping some gas onwards, the plan also includes an onshore regasification unit and connections to the existing gas-distribution network for conventional gas applications—heating, electrical generation, etc. Experts feel this will provide the project’s developers with flexibility, as it will take time for LNG road-transport infrastructure to develop in Germany. Currently, it is almost nonexistent.

The €500 million terminal will have facilities to transfer, store, and redistribute the liquid for use as maritime-bunker fuel, road-transport fuel, and various industrial applications. Such direct use of LNG as a liquid fuel, without regasification, is known as “small-scale” LNG. This is distinct from “large-scale LNG,” which involves much-higher volumes that are re-gasified in huge facilities and injected into the gas grid for conventional uses.

A sense of scale is important. The Brunsbüttel facility will receive LNG equivalent to 5 billion cubic meters (bcm) of gas per year. In 2016 Germany consumed 80.5 bcm of gas. So the Brunsbüttel facility’s capacity to re-gasify a portion of the LNG could help replace a part of the gas Germany now receives from the Netherlands, whose Groningen field is mandated to close soon. But the small scale of the new facility’s means it cannot significantly diminish Germany’s great dependence on Russian and Norwegian pipeline imports.

Indeed, despite a spate of articles claiming the contrary in major media outlets, including Der Spiegeland Bloomberg, the goal of the federal government’s new LNG policy is not to cut dependence on Russian gas. The entire regulatory and ministerial review process clearly focused on fueling maritime and heavy-road transport. Clearly, this small-scale facility provides no serious counterweight to Germany’s Gazprom imports, which are projected to rise from current levels of 55 bcm via Nord Stream 1, to 110 bcm of gas per year when Nord Stream 2 is complete, or about 60 percent of total German gas imports. At present, Germany receives 31 percent of its gas from Russia and 24 percent from Norway. Reversing this reliance on Russia would require multiple large-scale LNG regasification terminals capable of fueling a major portion of the country’s conventional gas demand for electricity generation, heating, etc.

Stalled Transport Cleanup

So what is the motivation for the new LNG policy? 46.1 percent of German GDP is dependent on exports (2016 data), compared to 26.9 percent for OECD states overall. Therefore, it is especially important that Germany be competitive in its maritime and heavy road transport to move all those goods. Yet despite having pinned the nation’s commercial future on the success of the Energiewende, actors from government, industry, political parties, and climate/environmental institutions have, embarrassingly, accomplished virtually nothing when it comes to cleaning up air-pollution and carbon emissions from transport. The so-called Verkehrwende (transport transition) is going nowhere. The ongoing diesel scandal is but one aspect of this, involving passenger vehicles. However, in maritime and heavy trucking, Germany has fallen disconcertingly behind many other European states and the United States.

For example, in California, after some 15 years of efforts, in 2015 fully 60 percent of all buses were running on compressed natural gas (CNG), as were 17 percent of all U.S. buses. This means their engines were emitting about 99% less particulates and sulfur dioxide, 70% less nitrogen oxides, reducing noise pollution about 50% and emitting from 12 to 20 percent less CO2 than diesel fueled engines, which remain ubiquitous in most German cities. Using LNG in buses would bring similar environmental benefits to Germany.
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Bolivarian Venezuela in crisis: An oil-rich nation collapses? Berlin, 10 October

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Bolivarian Venezuela in crisis: An oil-rich nation collapses? – Panel Discussion (bios follow):

  • Ms. Rita Bitar Deeb  PhD student in Political Science at the Otto-Suhr-Institut of Freie Universität Berlin
  • Dr. Ivo Hernandez  Lecturer in International Relations at the Political Science Institute of Universität Münster
  • Dr. Manuel Silva-Ferrer  John Boulton Foundation Fellow and Lecturer at the Latin-American Institute of Freie Universität Berlin
  • Dr. Thomas W. O’Donnell -Moderator  Guest Lecturer at Hertie School of Governance and the European Studies Program, FU/BEST at Freie Universität Berlin

WHEN: 10 October, 6-7:30 pm. LOCATION:  Hertie School of Governance,  Friedrichstrasse 180 – 10117 Berlin, Germany.  [To attend, please register online.] – Venezuela is currently unable to adequately feed its people, or to provide basic services such as medical care, education, and electricity. Polls indicate about 90% of the population would vote to remove its Chavista president, Nicolas Maduro, if his government allowed a recall referenda to take place this year, which is widely demanded. What will happen in Venezuela: Collapse? Chaos? Democratic renewal?  And, moreover, why is this occurring now?

Since the mid-20th Century, fueled by oil riches, Venezuela has veered from being the leading example of ‘democratic development’ within a continent rife with right-wing dictatorships, to a nation mired in its own economic and political crises. A ‘neo-liberal shock’ in the late-1980’s failed and was roundly rejected by citizens. At the end of the 1990‘s, Hugo Chavez broadly excited the hopes for development of not only Venezuelans but elicited significant sympathy worldwide with Chavismo’s ‘new resource nationalism’ and ’21st Century Bolivarian Socialism’. However, this leftward turn is also demonstrably failing, with the nation again on the brink of disaster. What comes next? Our panel of Venezuelan experts weighs in and will address attendees’ questions.


Rita Bitar Deeb is a PhD student in Political Science at the Otto-Suhr-Institut of the Freie Universität Berlin. She received her Master in Public Policy and Management from the University of Pittsburgh and Graduate Certificate in Latin American Studies. Her research interests are democratization process, social development and gender policy. She has worked for the Inter-American Development Bank (IADB), and several local NGOs as project coordinator in Venezuela (Atenea, Súmate, Red de Apoyo-HHRR). Bitar has taught at the University of Kassel in Germany, and at the Catholic University in Caracas.


Ivo Hernandez is lecturer in International Relations at the Political Science Institute of Universität Münster.  He studied at Universidad Central de Venezuela (UCV) in Caracas, the London School of Economics (LSE), the University of Heidelberg and University of Tübingen in Germany and The National Defense University in Washington D.C. His research interests include oil politics, national oil companies, the logics of terrorism, and Latin American politics and political economy.


Manuel Silva-Ferrer is John Boulton Foundation Fellow – exploring oil, society and culture in 20th-Century Latin America – as well as Lecturer at the Latin-American Institute of Freie Universität Berlin.  Born in Caracas, he is a graduate of the Institute of Communication Studies at Universidad Central de Venezuela (UCV) and earned his PhD from Freie Universität Berlin.  He was Director of the state film foundation Cinemateca Nacional de Venezuela and Head of Cinema and Media at the Ministry of Culture where his work included developing the National Academy of Film and Audiovisual.  Silva-Ferrer led ExtraCámara, a magazine for Latin-American photography, and was co-responsible for the creation of the Centro Nacional de la Fotografía, a public foundation for the promotion of photographic art. During his studies, Silva-Ferrer was Fellow of the Fundación Gran Mariscal de Ayacucho, and awarded a PhD full scholarship from the German Academic Exchange Service (DAAD).


Moderation & comments:

Thomas W. O’Donnell is Guest Lecturer at Hertie School of Governance and the European Studies Program (FU/BEST) at Freie Universität Berlin.  An academic, analyst and consultant in the global energy system and international relations, his work has encompassed especially the role of oil and gas in the EU, Russia, Latin America, Middle East, China and the USA.  His PhD is from the University of Michigan at Ann Arbor in experimental nuclear physics, and he previously studied Political Science and China Studies at the State University of New York and Canisius College.  In 2008-09, he was US Fulbright Scholar and Visiting Professor at the Center for the Study of Development (CENDES) at the Central University of Venezuela (UCV) and in 2015 AICGS (American Institute of Contemporary German Studies) & DAAD Fellow in Washington D.C. O’Donnell has taught post-graduate seminars on energy in international relations and development at The University of Michigan, The Ohio State University, The New School University’s JJ Studley Graduate Program in International Affairs (NYC),and Freie Universität, JFK Institute (Berlin). He is Senior Analyst at Wikistrat and consults with other geopolitical and business-intelligence firms. Before his PhD, O’Donnell gained broad tech experience in U.S. automobile-manufacturing, railway-operations and power-generation industries.  He is author of some 40 peer-reviewed scientific physics papers.


If you wish to attend, please register online.