German LNG Terminal Narrows List of Potential EPC Contractors

Four companies are now under consideration for the EPC deal, which will include the building of a jetty with two berths for LNG carriers. Located near the Port of Hamburg, Germany's first LNG terminal is scheduled to start up by the end of 2022.

German LNG Terminal

German LNG Terminal, a joint venture (JV) of Dutch and German companies spearheading the LNG import terminal project in Brunsbuettel, Northern Germany, has finished its EPC (engineering, procurement, construction) contractor pre-qualification process. The JV said in a statement that it has placed four EPC contractors on the short list to continue with the competitive tender process.

The four shortlisted companies are the Spanish team composed of Cobra Instalaciones y Servicios and Sener Ingenieria y Sistemas; the South Korean pair of Hyundai Engineering and Korea Gas Corporation; an international group of Sacyr Fluor, Entrepose Contracting, and VINCI Construction Grands Projets; and the Spanish-German duo of Tecnicas Reuinidas and Heitkamp HIKB. The EPC tender will close on 5 December, and the JV plans to award a contract by the end of April 2020.

The JV, which consists of Dutch companies Gasunie LNG and Vopak LNG as well as Hamburg-based Oiltanking, said its essential qualifications for potential EPC bidders were a strong safety track record, experience in the design and construction of similar projects, awareness of German codes and practices, and financial strength.

The EPC scope contains a jetty with two berths for LNG carriers ranging from 1,000 to 265,000 Bcm (both with LNG unloading and loading capabilities), LNG storage tanks, LNG vaporization, and distribution facilities for a total capacity of up to 8 Bcm/yr. Dutch infrastructure provider Gasunie has been commissioned to develop the terminal, which is scheduled to cost as much as EUR 500 million.

Located near the Port of Hamburg along the Elbe River, the terminal will primarily access markets in northwest Europe, Scandanavia, and the Baltics via the Kiel Canal. Construction work is scheduled to begin sometime in 2020, with the terminal becoming fully operational by the end of 2022.

The JV also said that the permit approval process for the project is steadily moving forward following the end of the scoping phase this past July, and that major European and non-European LNG players have shown “serious commercial interest” in the project.