Dow buys stake in German LNG terminal developer HEH

US chemical firm Dow said it has bought a minority stake in Germany’s Hanseatic Energy Hub, the developer of the Stade LNG import terminal near Hamburg.

Dow said in a statement it has signed a definitive agreement to take a minority stake in HEH and is working with the latter’s shareholders to advance Germany’s capabilities to import supplies of LNG, bio-LNG and synthetic natural gas.

The firm did not reveal the details of the stake purchase.

Current HEH partners include Germany’s Buss Group, Switzerland’s Partners Group, and Belgium’s Fluxys.

The partners plan to build the LNG import terminal on Dow’s Stade industrial park.

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, it said.

FID by 2023

With a projected regasification capacity of 13.3 bcm of natural gas per year, the import terminal supports the recent deal between the European Commission and the US on European energy security by satisfying up to 15 percent of Germany’s current natural gas demand, Dow said.

The agreement would also allow the US to meet nearly 25 percent of its goal to export 50 bcm of natural gas annually to Europe by 2030, Dow said.

Additionally, Dow said the terminal would repurpose off-gas heat at the Dow site for the carbon emissions-free regasification of the liquefied gas back to its gaseous state.

Dow added the project remains subject to a final investment decision, which is expected by 2023.

Capacity interest

HEH previously said the terminal would have a capacity of 12 bcm per year.

It said on Monday that market players have shown “great interest” to book capacity at the planned facility.

Last month, HEH invited international market participants to express their interest in booking long-term capacity in Stade from 2026 as it looks to accelerate the realization of the LNG import terminal.

The JV also received approval from the local government for the planned Stade facility and signed a memorandum of understanding with German energy firm EnBW for capacity booking.

As the next step, HEH is planning to submit the permit documents for the terminal and port.

Germany currently has no large LNG import terminals but there are several facilities on the table including proposals from German LNG Terminal and Uniper, which received backing by the government.

Uniper and RWE are also finalizing talks to secure three floating storage and regasification units (FSRUs) for Germany as the country looks to slash dependence on Russian gas.

Most Popular

Update: Shell’s LNG Canada receives LNG cargo

Shell’s LNG Canada has received a cargo of liquefied natural gas as part of the commissioning and start-up phase.

Glencore seals LNG supply deal with China’s Shandong Order Group

China’s Shandong Order Group has signed a deal to buy liquefied natural gas (LNG) from a unit of Switzerland-based energy trader Glencore.

Venture Global LNG gets Calcasieu Pass approval from FERC

US LNG exporter Venture Global LNG has received approval from the US FERC to launch operations of its entire Calcasieu Pass LNG terminal in Louisiana.

More News Like This

DET terminates Stade FSRU contract with HEH

State-owned German LNG terminal operator DET has terminated the contract related to the Stade FSRU-based facility with compatriot Hanseatic Energy Hub, the developer of the onshore LNG terminal in Stade.

Belgium’s Fluxys offers Zeebrugge LNG slots

Fluxys LNG, a unit of Fluxys, is offering boosted slots on June 5, June 11, June 21, June 26,...

Fluxys offers regas slots at Zeebrugge LNG terminal

Fluxys LNG, a unit of Fulxys, is offering five additional slots on February 14, February 24, March 9, March...

Germany’s HEH appoints finance chief

Germany’s Hanseatic Energy Hub, the developer of the Stade LNG import terminal near Hamburg, has appointed Axel Zwanzig as...