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ENERGY

Germany builds new gas terminals to succeed Russian pipelines

Germany's most strategically important building site is at the end of a windswept pier on the North Sea coast, where workers are assembling the country's first terminal for the import of liquefied natural gas (LNG).

The construction site of the Uniper Liquefied Natural Gas (LNG) terminal in Wilhelmshaven
The construction site of the Uniper Liquefied Natural Gas (LNG) terminal in Wilhelmshaven on the North Sea coast, northwestern Germany, is pictured on September 29, 2022. The terminal is set to come online towardfs the end of 2023 as Germany seeks to wean itself off Russian pipeline imports. Photo: FOCKE STRANGMANN / AFP

Starting this winter, the rig, close to the port of Wilhelmshaven, will be able to supply the equivalent of 20 percent of the gas that was until recently imported from Russia.

Since its invasion of Ukraine, Moscow has throttled gas supplies to Germany, while the Nord Stream pipelines which carried huge volumes under the Baltic Sea to Europe were damaged last week in what a Danish-Swedish report called “a deliberate act.

In the search for alternative sources, the German government has splashed billions on five projects like the one in Wilhelmshaven.

a man works at the wilhelmshaven lNG terminal

A man works at the construction site of the LNG terminal in Wilhelmshaven on September 29, 2022. (Photo by FOCKE STRANGMANN / AFP)

Altogether the new fleet should be able to handle around 25 billion cubic metres of gas per year, roughly equivalent to half the capacity of the Nord Stream 1 pipeline.

READ ALSO: Nord Stream 2 pipeline has stopped leaking gas under Baltic Sea: spokesman

New platform

At the site in Wilhelmshaven, the half-finished concrete platform emerging from the sea sprays workers in fluorescent yellow vests with a fine mist.

Back on solid land, a constant stream of lorries delivers sections of grey pipe, which should relay the terminal to the gas network.

LNG terminals allow for the import by sea of natural gas which has been chilled and turned into a liquid to make it easier to transport.

A specialist vessel, known as an FSRU, which can stock the fuel and turn LNG back into a ready-to-use gas, is also hooked up to the platform to complete the installation.

landside construction site of the LNG terminal in wilhelmshaven

A worker rides a bike next to a pipeline at the landside construction site of the Uniper LNG in Wilhelmshaven on September 29, 2022. (Photo by FOCKE STRANGMANN / AFP)

Unlike other countries in Europe, Germany until now did not have an LNG terminal, instead relying on relatively cheap pipeline supplies from Russia.

But since the invasion of Ukraine, Germany has set about weaning itself off Moscow’s gas exports, which previously represented 55 percent of its supplies.

To diversify its sources, secure enough supplies of the fuel and keep its factories working, Berlin has bet massively on LNG to fill the gap left by Russian imports.

Chancellor Olaf Scholz last week signed an agreement with the United Arab Emirates for the supply of LNG, while touring Gulf states in search of new sources.

Renting five FSRU ships to plug into the new terminals has also set Berlin back three billion euros ($2.9 billion).

Environment

Following the outbreak of the war in Ukraine, Germany passed a law to drastically speed up the approval process for LNG terminals.

COO holger kreetz at wilhelmshaven lng terminal

Chief Operating Officer of German energy company Uniper, Holger Kreetz, is pictured during a media event at the construction site of the Uniper Liquefied Natural Gas (LNG) terminal at the Jade Bight in Wilhelmshaven on September 29, 2022.  (Photo by FOCKE STRANGMANN / AFP)

In Wilhelmshaven, the work is coming along rapidly. The terminal should be finished “this winter”, says Holger Kreetz, who heads the project for German energy company Uniper.

The strategic importance of the terminal has seen building work advance surprisingly quickly. “Normally, a project like this takes us five to six years,” Kreetz tells AFP.

The arrival of the new terminal has been welcomed by many residents in Wilhelmshaven, where deindustrialisation has pushed the unemployment rate up to 10 percent, almost twice the national average.

“It’s good that it’s in Wilhelmshaven… it’ll bring jobs,” Ingrid Schon, 55, tells AFP.

Opposition comes from groups who fear the accelerated timescales for approval and construction could come at a cost to the environment.

The landside construction site of the Uniper  lng terminal in wilhelmshaven

The landside construction site of the Uniper LNG terminal in Wilhelmshaven, pictured on September 29, 2022. (Photo by FOCKE STRANGMANN / AFP)

Young activists from the group “Ende Gelaende” managed to block the site in Wilhelmshaven for a day in August.

The German environmental organisation DUH said the works would “irreversibly destroy sensitive ecosystems as well as endanger the living space of threatened porpoises”.

The source of the fuel has also been a sore point, with concerns raised that natural gas produced from fracking in the United States could be imported via the new terminal.

Criticism of the project has been dismissed by Economy Minister Robert Habeck, a Green party politician, who has emphasised the importance of “energy security”.

By 2030, the site is set to be converted for the importation of green hydrogen, produced with renewables, which Berlin has backed as part of its energy transition.

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GERMANY AND UKRAINE

What a Russian victory in Ukraine would mean for Germany

For German residents, there is reason to fear a Russian victory in Ukraine. A new mass exodus of refugees would create bottlenecks in housing, childcare and schools, among other issues.

What a Russian victory in Ukraine would mean for Germany

Recent news from Ukraine has been bleak. The surge in missile and drone attacks on Ukrainian power plants over recent weeks has plunged whole districts of the capital into darkness for hours on end.

Kyiv has outlined a five-point strategy to weather the storm, including electricity rationing, urging help from abroad, receiving more air defence systems, and overhauling the grid.

Ukrainian President Volodymyr Zelensky this week said Ukraine needed “quick” and “cost-effective” repair work ahead of winter.

“We need your equipment and financial support to respond now and maintain normal life,” he told a reconstruction conference in Berlin.

While a plan to use frozen Russian assets for war-torn Ukraine dominates G7 talks in Italy on Thursday, there are voices in Germany – especially among the far-right AfD party – that would rather Germany cut off all its support for Ukraine. But these pro-Russian positions, veiled as arguments for peace, tend to ignore how dramatically a Russian victory in Ukraine would shake Germany.

An investigation by Tagesspiegel looked at what exactly a Russian victory would mean for people living in Germany. Here are the main impacts.

Germany would need to dramatically increase military spending

Andreas Schwarz, the SPD budgeter responsible for the defence budget has warned that if Ukraine lost the war, Germany would be forced to spend even more money on defence in one fell swoop.

Russia would suddenly be at the NATO border in Europe feeling militarily superior.

German defence expert Roderich Kiesewetter suggests that Germany would run out of ammunition after a few days in the event of a direct war. Kiesewetter has called for at least three percent of Germany’s gross domestic product to be invested in armaments.

Germany has made efforts to up its defence spending recently, but it is still unclear if the country will maintain a two percent GDP target for defence spending going forward.

But a sense of urgent need to ramp up Germany’s military defences does seem to be growing. On Wednesday Defence Minister Boris Pistorius announced a plan to bring back conscription to the armed forces.

Recently, former British Armed Forces Minister James Heappey estimated that a Ukrainian defeat would cost the West collectively trillions of dollars.

READ ALSO: Is Germany gearing up to reintroduce compulsory military service?

Pistorius with members of the army

Ukrainian President Volodymyr Zelensky (centre left) and German Defence Minister Boris Pistorius (centre right) stand with Ukrainian and German soldiers during a visit to a military training area in Mecklenburg-Vorpommern, north-eastern Germany, on June 11, 2024. Photo by Jens Büttner / POOL / AFP

Higher prices

Ukraine is one of the largest agricultural exporters in the world and also has stocks of rare earths and critical minerals.

A Russian takeover of the country would likely spell massive price fluctuations for goods like Ukrainian grain – which would spell increased grocery prices in Germany as a start, according to many economic projections.

More war refugees in Europe

Migration researcher Gerald Knaus told the Tagesspiegel that a Russian victory in Ukraine could “turn another ten million people into refugees”.

In parts of eastern Ukraine, such as the metropolis of Kharkiv, Russia has been wearing down peoples’ will to stay with near constant bombardment. 

Hundreds of thousands of people living there regularly go without electricity due to destroyed substations and infrastructure. Kharkiv alone is home to 1.3 million, including 200,000 internally displaced persons.

According to Eurostat, since the beginning of the war, 4.3 million Ukrainians have fled to neighbouring European countries. At 1.27 million, Germany has taken in the majority.

READ ALSO: Two years later, two Berlin residents from Ukraine on how war affects their lives

Germany’s interior ministries don’t expect tensions to ease soon. The Federal Office for Migration (BAMF) continues its efforts to distribute refugees across the country, but there is no doubt that in many places resources are running thin.

Helmut Dedy, Chief Executive of the Association of German Cities has called on federal and state governments to provide more facilities.

Increased pressure on the welfare system

Many refugees from Ukraine, and indeed many refugees broadly, are dependent on state benefits for some period of time after arriving in Germany.

As of January the employment rate among refugees from Ukraine was around 25 percent. In December of last year 710,000 Ukrainians received citizen’s allowance.

Refugees are obliged to apply for a work permit in Germany before they can join the workforce. Additionally they face a language barrier, and many of their professional qualifications may not be immediately recognised.

School and day care spots running thin

Since the outbreak of Russia’s invasion of Ukraine, nearly 220,000 children and young people who have fled the country have enrolled in German educational institutions.

So far German states have managed to handle the situation relatively quietly, but there is reason to believe that further stress on the system would be more than it can take.

A Ukrainian student in a German classroom

A name badge with an Ukrainian name seen in an international class at the Max-Ernst comprehensive school (Gesamtschule) in Cologne. (Photo by Ina FASSBENDER / AFP)

The president of the North Rhine-Westphalian Teachers’ Association suggests that the region he represents is already at its limit.

The German Association of Cities and Towns and the Association of Towns and Municipalities (DStGB) have also identified a shortage of school and day care places, as well as shortages of language courses and staff for integration services.

Germany’s educational system has already shown signs of stress – in the form of teachers’ strikes and school dropouts – before an additional influx of students are added into the mix.

Exacerbating the housing shortage

In response to the initial wave of incoming Ukrainian refugees, a section of the Building Code was enacted which allowed for the construction of new refugee accommodation without a development plan.

In some places, especially in parts of eastern Germany with growing vacancies, the influx of Ukrainians actually helped to stabilise the housing market.

But in cities where a severe shortage of housing has already been growing for years, there is no doubt that any number of incoming residents only adds stress.

Such is not only the case in popular cities like Berlin, Hamburg or Munich. In Mecklenburg-Western Pomerania, for example, the local Ministry of the Interior sees municipalities facing a major challenge in providing housing.

READ ALSO: ‘Tense housing situation’: Why a Berlin renter can’t be evicted for two years

German defence expert Roderich Kiesewetter emphasises that the aforementioned impacts on German life are not yet a foregone conclusion. He told Tagesspiegel that Ukraine could still defend itself and restore its 1991 borders according to international law, “But only if we support them accordingly and stop setting red lines for Ukraine and us”.

With reporting by AFP.

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