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Germany's EnBW to buy 3 bcm of LNG from planned Stade terminal

Germany's EnBW to buy 3 bcm of LNG from planned Stade terminal
Germany's EnBW to buy 3 bcm of LNG from planned Stade terminal   -   Copyright  Thomson Reuters 2022
By Reuters

FRANKFURT – Germany’s EnBW on Thursday said it plans to buy 3 billion cubic metres of gas a year from a liquefied natural gas (LNG) terminal planned at the Elbe river port of Stade as operators spur plans to reduce their dependence on Russian energy.

It said a memorandum of understanding has been signed with the LNG hub’s operator, Hanseatic Energy Hub (HEH).

“In a first step, EnBW intends to purchase at least 3 billion cubic metres of natural gas per annum via the LNG terminal in Stade and is also holding talks on further forms of cooperation,” EnBW said in a statement.

There are plans for three LNG hubs in Germany, which require anchor buyers to make for a business case, as well as a reliable legal framework ensuring infrastructure connections, which the government has signalled will be developed.

EnBW, Germany’s No.3 energy company by market value, is stepping up efforts to cut its use of Russian coal and gas but has said it cannot make up for a sudden halt to imports – chiming with larger rivals RWE and E.ON.

Stade managers say the planned hub could be ready from 2026 with a regasification capacity of 12 bcm per year.

It would be embedded in an existing industrial site with optimal river conditions and potential for the development of handling entirely carbon-free gases in the long-term future, they say.

EnBW said HEH plans to submit the approval documentation for the LNG terminal and port before Easter.

Interested parties will also have until April 8 to express their interest in long-term capacity bookings.