Germany's Stade LNG hub invites capacity bookings

Fluxys Belgium SA

15/06/2022 16:00

By Vera Eckert
    FRANKFURT, June 15 (Reuters) - Germany's Hanseatic Energy
Hub (HEH), the developer of the Stade liquefied natural gas
(LNG) terminal near Hamburg, will invite market players to book
capacity as Europe's biggest economy presses ahead with plans to
secure its long-term energy supplies.
    The HEH is expected to be completed in 2026 and will start
with fossil and some renewable LNG and synthetic methane, said
HEH's commercial director Danielle Stoves on Wednesday, with a
view to phasing in hydrogen-based energy, such as ammonia,
long-term in Europe's transition to green energy and lessen its
dependence on Russian pipeline gas.  urn:newsml:reuters.com:*:nL5N2WO21Z urn:newsml:reuters.com:*:nL5N2VY2ZR
    "Our aim is, by the autumn, to have signed binding contracts
for sufficient volumes to take a final investment decision in
the first quarter of 2023 and to get building the terminal,"
Stoves told Reuters.
    The HEH group will allocate 12 billion cubic metres (bcm),
or 90% of the hub's maximum regasification capacity per year at
the new hub, while 10% will be auctioned on an annual basis for
short-term needs, she said.
    Germany's energy regulator recently lowered the feed-in
tariffs into pipeline networks at LNG terminals by 40%,
improving the competitiveness of access to the market.
 urn:newsml:reuters.com:*:nL8N2XQ1C1
    HEH is backed by Belgian gas transport networks group Fluxys
 FLUX.BR , Swiss investment company Partners Group  PGHN.S ,
acting on behalf of its customers, German logistics group Buss
and chemicals company Dow  DOW.N .
    To speed up the alternative landing points for LNG, Germany
has leased four floating storage and regasification units
(FSRUs).  urn:newsml:reuters.com:*:nL1N2V802B
    Stoves said that operating such a vessel if Stade was called
on was possible in theory, but HEH's focus was on an onshore
plant.

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 (Reporting by Vera Eckert, editing by Miranda Murray and Louise
Heavens)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))