The European Commission on Friday gave the green light for German subsidies worth €4.06 billion ($4.2 billion) for the operation of four floating terminals for the import of Liquefied Natural Gas (LNG).
The so-called storage and regassification units were chartered in 2022 and are operated by state-owned Deutsche Energy Terminal on Germany’s North Sea coast.
The approved state aid “significantly contributes to ensuring continuity of gas supply to Germany and neighbouring countries following the end of Russian pipeline gas imports,” said European Commission Vice President Teresa Ribera.
The grant contributes to reducing the dependency on Russian fossil fuels and enables the diversification of energy supplies, she added.
The four floating terminals are a temporary solution until the construction of on-shore LNG terminals is completed, the commission said.
The subsidies will cover losses incurred as the terminals were chartered at the height of the energy crisis suffered by the EU when Russia drastically reduced fuel exports to the bloc in retaliation for the EU’s support of Ukraine.
Germany committed to subletting the floating terminals if the construction of the permanent replacements is completed before the lease ends, the commission said.
Strict rules apply in the European Union when a member state wants to support companies with subsidies or tax benefits. The commission monitors compliance with these rules.
