Germany’s LNG terminals to cost more than double: Report

BERLIN

The cost of the planned liquefied natural gas (LNG) terminals will cost Germany €3.5 billion ($3.6 billion) more than planned, the news magazine Spiegel reported.

A total of about €6.56 billion in budgetary funds is currently earmarked, Germany's Federal Ministry of Economics confirmed on Monday.

Previously, €2.94 billion had been budgeted for the LNG terminals. The increase was "necessary" due to the dynamically developing situation, according to the Ministry of Economics.

The ministry also announced that in "extensive consultations with numerous stakeholders" further costs had now been determined and initially forecast costs had been concretized. These include operating costs and costs for additional infrastructure measures on land.

"In particular, the reduction and then the discontinuation of Russian gas supplies make them absolutely necessary," it added.

Documents from the budget committee also show that two of the terminals had to be chartered for 15 years instead of 10, as originally planned.

According to the documents, Spiegel reported that Germany has negotiated the option of shortening the period to 10 years, but this must be decided as early as next year.

There was criticism from the opposition in parliament. Victor Perli, a budget expert from the left-wing Die Linke party, told Spiegel that the coalition had made itself vulnerable to blackmail with the use of LNG gas without alternatives and would now have to pay billions more.

Green Party budget politician Sven Christian Kindler said: "In the short term, gas supply must be secured, but we must be careful not to create fossil overcapacity for the future in the process. We need more clarity in the budget committee about the costs and risks of LNG projects."