EnBW doubles LNG purchase commitment at planned Stade terminal

Fluxys Belgium SA

25/04/2023 09:30

FRANKFURT, April 25 (Reuters) - German utility EnBW
 EBKG.DE  on Tuesday said it will double its annual purchasing
pledge to 6 billion cubic metres (bcm) of liquefied natural gas
(LNG) from a terminal planned at the Elbe river port of Stade.
    Germany is developing LNG import facilities to help wean
itself off of Russian piped gas.
    A final investment decision for Stade's Hanseatic Energy Hub
(HEH) is due in mid-2023.
    Managers say the planned land-based hub could be ready from
2026 with a regasification capacity of 13.3 bcm per year.
    "LNG is important for increasing the gas supply in Germany
in the interim the time towards the energy transition and to
build the bridge to green energy supply," EnBW said in a
statement.
    "All bookings made include the opportunity to a switch to
ammonia as a hydrogen-based energy source at a later date," it
added.
    Stade, which in January received pledges by state-controlled
Sefe to buy 4 bcm of LNG annually from 2027, therefore has now
booked 80% of its production capacity.
    Stade is backed by Belgian gas transport networks group
Fluxys  FLUX.BR , Swiss investment company Partners Group
 PGHN.S , German logistics group Buss and chemicals company Dow
 DOW.N .
    Ahead of the land-based facility, a German state-funded
floating LNG terminal (FSRU) is expected at Stade before the end
of 2023.
    It is one of six such vessels at four locations that will
tide German industry and consumers over until fixed terminals
are built.

 (Reporting by Vera Eckert; editing by Rachel More and Jason
Neely)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))