Le Havre Floating LNG Terminal Demobilized as LNG Supply Crisis Subsides

floating LNG terminal Le Havre France — Cape Ann was commissioned in France just two years ago to add LNG import capacity (TotalEnergies)

Reporting that LNG supply conditions in France and Europe have stabilized, TotalEnergies announced that it is demobilizing the floating LNG storage and regasification unit (FSRU) it established at Le Havre. The vessel Cape Ann was pushed into the role as a quick solution in the fall of 2023 in response to a perceived gas crisis as Europe moved to replace supplies from Russia.

According to the company, the LNG terminal, which was the fifth established in France, is no longer necessary. They point to the lack of use of the terminal, which was viewed as a “safety net,” and especially for the winter months when peak demand was anticipated.

France’s Ministry of Energy Transition set the objectives for the terminal in March 2023, projecting five years of operation from commissioning. It was the follow-up to an August 2022 law for emergency measures, which sought to guarantee the security of gas supply to France. The goal was to handle 50 TWh per year, and when the Cape Ann went into service in October 2023, TotalEnergies reported it had a throughput capacity of up to 155 GWh per day, which represented up to 10 percent of France’s annual natural gas consumption.

TotalEnergies emphasizes that it undertook the project at the request of the authorities and implemented the project at its own expense without public subsidies. The company reserved 50 percent of the capacity of the terminal, and under French law, the remaining capacity was marketed to other market participants.

The terminal in Le Havre was in addition to Dunkirk, Montoir, Fos Cavaou, and Fos Tonkin. Under the contract, gas from Norway was being supplied via the Cape Ann.

The vessel, which is owned by Höegh LNG, was launched in 2010. It has a storage capacity of 142,500 cubic meters.

The Cape Ann had become France’s first floating terminal when it began operations in 2023. It was also continuing a long tradition of LNG operations at Le Havre. The first LNG terminal in continental Europe was built in Le Havre and operated from 1965 to 1989. TotalEnergies highlights that it is currently the world’s third-largest LNG player with a global portfolio of 40 Mt per year in 2024. It is committed to growing its LNG operations with a goal of reaching 50 percent of its sales from LNG by 2030.