Germany's LNG Infrastructure Pains

https://www.euractiv.com/section/energy-environment/news/is-germanys-lng-gold-rush-coming-to-an-end/

This article demonstrates the internal conflict that plagues modern Western capitalist economies. Germany needs Liquefied Natural Gas, all the more since the Nordstream pipelines were blown up and the gas supply from Russia has been cut off.

However, the regasification platforms that have since been in demand – are now in question. The issue here is not whether Germany needs them, but just how many – and this is affecting investment as there has been a boom and scramble to invest in this necessary (and therefore profitable) infrastructure.

But looking at the numbers concerning energy reduction and diversification, some have suggested that too many platforms have been planned. If Germany meets its reduction goals by 2030, the present demand won't be there and some of these platforms have the potential to sit idle – and thus lose their market value.

And so a debate has ensued – is it realistic or safe to plan that far ahead, all the more given the uncertainty of European geopolitics and the ongoing war? Can the weather-energy use metrics be relied upon? What if there are years of more 'normal' winter temperature patterns which is a distinct possibility. By all accounts the 2022-2023 winter was especially mild. Such a 'normal winter' scenario will mean higher demand and the German government will look foolish if it shut down these projects and the nation suffers as a result.

It's an interesting story, just to consider the dynamics at work but to me the real story is below the surface. There has to be a mad scramble, a massive lobbying effort underway as the companies involved try to work everything from the investment banks to the politicians. There's a lot of money to be made from these projects and these investors love deals wherein the profits go into their pockets but losses are dumped on the public and compensated through tax revenue – also known as privatised profits and socialised losses. This story may work itself out but there's such a huge potential for corruption here – and future scandal, that it bears watching.