By Michael Dabaie


Dow Inc. said Monday it would take a minority stake in the Hanseatic Energy Hub GmbH.

The materials science company said it is working with HEH's members to advance Germany's capabilities to import supplies of liquified natural gas, bio-liquified natural gas and synthetic natural gas through the construction of an import terminal.

The HEH consortium, which now includes Dow, Fluxys Belgium SA, Partners Group Holding AG and Buss Group, is planning to build, own, and operate an import terminal for liquified gases on Dow's Stade, Germany, industrial park.

The terminal is planned to be built by 2026 and would 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 meters of natural gas per year, the import terminal supports the Joint Statement between the European Commission and the U.S. on European Energy Security by satisfying up to 15% of Germany's current natural gas demand, Dow said.

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, Dow said. 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, Dow said.

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


Write to Michael Dabaie at michael.dabaie@wsj.com


(END) Dow Jones Newswires

04-11-22 0738ET