Dow takes stake in German LNG terminal developer HEH
New York-listed Dow has picked up a minority stake in Germany's Hanseatic Energy Hub (HEH) which is developing the Stade LNG import terminal near Hamburg, the company said on April 11.
The HEH consortium, which now includes Dow, Fluxys, Partners Group and Buss Group, is planning to build, own, and operate an import terminal on Dow's Stade industrial park. The final investment decision on the project is expected by 2023 and the terminal will likely be ready by 2026. Dow did not disclose the financial details of the deal.
The terminal, which will have a regasification capacity of 13.3bn m3/year, will be co-located with Dow's facilities. Dow is contributing the land for the construction of the terminal as well as infrastructure services, off-gas heat, site services and mutual harbor use rights.
The import terminal supports the joint statement between the European Commission and the US on European energy security by satisfying up to 15% of Germany's current natural gas demand, Dow said. The agreement would also allow the US to meet nearly 25% of its goal to export 50bn m3/year of natural gas to Europe by 2030. Additionally, the terminal will repurpose off-gas heat at the Dow site for the carbon emissions-free regasification of the liquefied gas back to its gaseous state.
The US company said that Germany’s dependency on natural gas is expected to increase as a transition fuel until sufficient renewable energy comes available longer term. Today, Germany receives approximately half of its natural gas through pipeline imports from Russia and the country currently has no LNG regasification and import facilities.