Milbank LLP advised Deutsche ReGas on the structuring and development of the Deutsche Ostsee LNG Terminal located in the port of Lubmin, Germany. The terminal, developed by Deutsche ReGas, is the first and so far only, privately financed LNG terminal in Germany.
The Deutsche Ostsee LNG Terminal was developed under an accelerated timeline to ensure it would be fully operational for Winter 2022/2023. In addition to early project structuring advice, the Milbank team was responsible for the negotiation and documentation of the key commercial contracts for the terminal, with a team from Wikborg Rein LLP advising in relation to shipping contracts. Notably, the transaction utilizes an innovative approach to capacity allocation for floating storage and regasification units (FSRU). The open season for regasification capacity at the terminal closed in October 2022 and was oversubscribed, securing the long-term supply of gas to Germany. Once fully operational the Deutsche Ostsee LNG Terminal will be among the largest contributors to LNG regasification capacity in the country.
Chris Taufatofua, partner in Milbank’s Global Project, Energy and Infrastructure practice in London, said, “We are delighted to have been able to play such a pivotal role in the development of one of the first LNG terminals in Germany and to support the drive towards improved energy security within Europe.”
The Milbank team was led by partner Chris Taufatofua (London) and included associates Kilian de Cintré and Jacob Panagi (both London), as well as partner Markus Muhs (Munich) for German law aspects of the transaction and Dan Bartfeld (New York).
Deutsche ReGas was also advised by Wikborg Rein LLP on shipping matters and by Hengeler Mueller on general regulatory and corporate matters. WaveCrest Energy provided technical and operational support to Deutsche ReGas.
