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France: New FSRU terminal – Revolution in LNG supply
Author:Mariusz Dasiewicz
On September 18, a Cape Ann tanker reached the port of Hawre. This floating FSRU (Floating Storage Regasification Unit) is a milestone in the development of the gas infrastructure of that country, with a view to ensuring flexibility in the supply of LNG in emergencies, which is important for France in the context of energy security. It was not without trying to block the unit's entrance to the port by a group of Greenpeace activists.
The new FSRU terminal is a groundbreaking project that constitutes a milestone in the development of France's gas infrastructure. At the moment of increased demand for LNG, such floating terminals as this one play a key role in ensuring uninterrupted supply. However, it is worth noting that, in the long term, investments in traditional land transports can still be more profitable.
On Monday at dawn, while attempting to enter the Cape Ann oil tanker into port, Greenpeace activists took action to prevent this maneuver. They used speedboats to block the entrance and also painted the slogan "GAS KILLS" on the shipboard.
The action was also joined by a group of scientists from the Scientists' organization in the Rebellion, expressing their protest against the perceived contradiction between the new infrastructure and the government's commitments last year, which assumed the withdrawal of France from the use of fossil fuels. Activists thus expressed their concerns and opposition to the developing gas infrastructure in France.
Helene Bourges, leader of the Greenpeace France campaign against fossil fuels, stated: "Terminal should not be put into service and the government should abandon any new fossil fuel extraction projects and the expansion of existing infrastructure."
A spokesman for TotalEnergies stressed that the company respects the right to manifestation, while expressing regret over all forms of violence, both verbal, physical and material. The safety of both sailors and activists is the company's priority.
Until recently, LNG land terminals dominated the European continent. France has four traditional land terminals on the mainland. However, now the new FSRU terminal in Hawre is the first such facility in France. It will be operated by TotalEnergies, and GRTgas will connect the pipeline to the gas transmission network.
The decision to select a floating FSRU terminal was dictated by several factors, including the speed of project implementation. The construction of a traditional landport can take many years, while the FSRU can run much faster. An example of this is the gas-port in Świnoujście, where Lithuania placed on a floating facility, which allowed them to complete the project faster than in Poland. Nevertheless, the FSRU has its drawbacks, such as higher maintenance costs and less flexibility in gas storage.
Argus' analysis indicates that although FSRU may initially be cheaper to purchase than the construction of a traditional land gasport, the operating costs may be much higher. Land gas can offer more gas storage capacity, which translates into more stable supplies. Therefore, some countries, including Germany, are experimenting with hybrid solutions, combining FSRU with land tanks on LNG.
The new FSRU terminal in France represents significant progress in the development of national gas infrastructure. However, the choice between a land terminal and a floating terminal depends on many factors, including the pace of supply and maintenance costs. To ensure supply reliability and greater flexibility, investments in traditional gas-ports on land remain an attractive alternative.
Written by Mariusz Dasiewicz
