Dow to Buy Minority Stake in German Energy Hub Constructing LNG Terminal

Chemicals maker Dow Inc. will take a minority stake in a consortium constructing a liquefied natural gas (LNG) import terminal in Germany, at a time when Europe looks to reduce its reliance on Russian energy.

The investment in Hanseatic Energy Hub GmbH comes after the Biden administration pledged the supply of 15 billion cubic meters (Bcm) of LNG to the European Union this year following Russia's invasion of Ukraine.

The import terminal has a projected regasification capacity of 13.3 Bcm of natural gas per year and would satisfy up to 15% of Germany's natural gas demand, Dow said in a statement on Monday.

The agreement would also allow the United States to meet nearly 25% of its goal to export 50 Bcm of natural gas annually to Europe by 2030, it said.

The consortium — which includes Dow, Fluxys, Partners Group and Buss Group — is planning to build the zero-carbon emission terminal at Dow's industrial park in Stade, Germany, by 2026.

Dow will contribute the land for its construction, along with infrastructure services and certain other resources.

The project is subject to a final investment decision, which is expected by 2023.

Dow shares, which have gained nearly 9% so far this year, added as much as 1.2% to $62.44 on Monday.

Related News

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}