Shell plc has committed to taking a large portion of import capacity for the future liquefied natural gas (LNG) terminal planned by German LNG Terminal GmbH, a facility buoyed by support from the government.

In a memorandum of understanding (MOU), which does not set out final terms, the amount of LNG to be contracted by Shell was not disclosed for the potential Brunsbüttel terminal. However, the London-based energy major said it would be “a substantial part” of the 8 billion cubic meters/year (Bcm/year) capacity.

Shell’s Fabian Ziegler, managing director in Germany, said the agreement is “a key step” to securing supplies in Western Europe as it keeps focus on longer-term climate goals.

Russia’s invasion of Ukraine has created extreme volatility in global energy...