EU’S FLOATING LNG TERMINALS FAIL TO DELIVER

France’s new Le Havre LNG terminal is sitting idle, and TotalEnergies, which installed it, isn’t using it either.

According to Bloomberg, only about 2% of France’s LNG imports last year passed through the floating storage and regasification unit at the port of Le Havre, which TotalEnergies plans to start operating in 2023.

The company said it has booked capacity at other terminals in Europe, including the UK, Belgium and the Netherlands.

The company was given permission to operate the terminal for five years, citing the need to improve security of supply following Europe’s worst energy crisis in decades.

Analysts are sceptical about the economic prospects of these installations. They believe that if demand continues to decline, France's investment in LNG will most likely become excessive.

Similar problems have occurred in Germany, where floating terminals have been affected. They have received LNG cargoes in much smaller volumes than land-based facilities in neighboring countries. At the same time, the operation of floating facilities is more expensive, especially in winter. The private company Regas is looking to lease its floating LNG terminals, especially to Egypt, which is forced to import LNG due to growing demand for methane.

Expansions of LNG refueling operations in Le Havre are planned: last month, fuel supplier Titan Clean Fuels received a permanent license to refuel trucks onto ships.