Dow takes minority stake in consortium constructing LNG import terminal in Germany, diversifying European energy supply
Dow Inc. (NYSE: DOW) has signed an agreement to acquire a minority stake in the Hanseatic Energy Hub GmbH (HEH), which aims to build a zero-carbon liquefied natural gas (LNG) import terminal in Stade, Germany, by 2026. This terminal is projected to fulfill up to 15% of Germany's natural gas demand, contributing nearly 25% to the U.S.'s goal of exporting 50 billion cubic meters of natural gas annually to Europe by 2030. Dow will provide land and infrastructure for the project, which supports European energy security amidst increasing reliance on natural gas.
- Acquisition of a minority stake in the Hanseatic Energy Hub, diversifying energy supply.
- Projected regasification capacity of 13.3 billion cubic meters per year.
- Terminal will fulfill up to 15% of Germany's natural gas demand.
- Contributes to U.S. goal of 50 billion cubic meters annual LNG exports to Europe by 2030.
- Zero-carbon emissions terminal expected operational by 2026.
- Project completion subject to final investment decision by 2023, creating uncertainty.
- Increased dependency on natural gas in Germany could pose long-term sustainability concerns.
- Terminal would satisfy up to
15% of Germany's current natural gas demand - Project capable of providing nearly
25% of U.S. annual commitment to increase LNG supplies to Europe - Dow to contribute land for the construction of the terminal as well as infrastructure services
- Zero-carbon emissions terminal expected to be operational by 2026
MIDLAND, Mich., April 11, 2022 /PRNewswire/ -- Dow Inc. (NYSE: DOW) announced today it has signed a definitive agreement to take a minority stake in the Hanseatic Energy Hub GmbH (HEH) and is working with HEH's current members to advance Germany's capabilities to import supplies of liquified natural gas (LNG), bio-liquified natural gas and synthetic natural gas through the construction of an import terminal.
The HEH consortium, which now includes Dow, Fluxys, Partners Group and Buss Group, is planning to build, own, and operate an import terminal for liquified gases on Dow's Stade, Germany industrial park. This zero-carbon emission terminal is to be built by 2026 and will be co-located with Dow's facilities in Stade. 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.
With a projected regasification capacity of 13.3 billion cubic metres (bcm) of natural gas per year, the import terminal supports the Joint Statement between the European Commission and the United States on European Energy Security by satisfying up to
"This collaboration to construct an LNG import terminal in Germany takes a major step in enabling a stable, cost-effective and sustainable supply of energy to Europe," said Neil Carr president of Dow Europe, Middle East, Africa and India. "For Dow, this allows us to make a significant contribution to transforming the energy supply in Germany in support of its 2045 climate targets while increasing the competitiveness of Stade, a site important for serving Dow customers throughout Europe."
While Germany is retiring nuclear and coal fired power generation, its 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.
The project is subject to final investment decision, which is expected by 2023.
Dow (NYSE: DOW) combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates 104 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately
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SOURCE The Dow Chemical Company
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