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EnBV Energie Baden-Wurttemberg AG has made a long-term commitment to 3 bcm/year of LNG regasification capacity at a development terminal in Stade, Germany, providing a home for its US supply inflows aimed at reducing reliance on Russia.
EnBV revealed on Thursday that it has secured capacity for more than 10 years in an agreement with Hanseatic Energi Hub GmbH. Hanseatic is developing a 13 bcm/y liquefied natural gas and hydrogen terminal in Stade, which is expected to be operational in 2026.
EnBV’s Georg Stamatelopoulos, member of the Sustainable Manufacturing Infrastructure Board, said the emissions-reducing designs and integration of hydrogen infrastructure at Stade made it the right choice to address short-term energy security issues while trying to stay on track with its climate goals.
[U.S. LNG Export Projects: To be or not to be — FIDs or Fast LNG is the question that NGI’s Director of Strategy & Research Patrick Rau asks after listening to third quarter earnings calls. Tune into NGI’s Hub & Flow podcast to learn more.]
“At EnBV we are working completely on the transformation from fossil fuels such as coal to non-fossil fuels such as hydrogen,” said Stamatelopoulos. “The cooperation with the Hanseatic Energy Hub fits very well with our efforts to become climate neutral by 2035.
EnBV lost more than $1 billion over the year on its contracts as market volatility soared, according to Moody’s Investors Service Inc. However, a credit analyst said on Thursday that EnBV was able to outperform other German utilities due to the diversity of its offering and revenues from its renewables and power generation businesses. Moody’s expects “EnBV will no longer be burdened by gas losses” by next year.
In October, EnBV joined a short list of European companies to sign long-term commitments with US LNG projects following a 20-year sales and purchase agreement with Venture Global Inc.
EnBV has also previously signed a framework agreement with other German companies, including Uniper SE and RVE AG. Uniper is the buyer of Freeport LNG and could receive additional volumes in the US from the proposed Commonwealth LNG project in partnership with Woodside Energi Group Ltd. RVE signed a tentative long-term contract with Sempra to supply from the unlicensed Port Arthur LNG project southeast of Houston earlier in the year.
Like other European countries struggling to secure additional natural gas supplies, Germany has been building regasification capacity. Together with Stade, Germany could add 1.4 Bcf/d of capacity with floating storage and regasification units to be installed in the ports of Lubmin, Brunsbuettel and Wilhelmshaven.
However, with LNG cargo prices weighing on European economies and competition with Asia for cargo, Germany has had to introduce measures to reduce consumption. The country’s energy regulator announced on Thursday that Germany had achieved its gas savings target for the first time since the start of the European heating season.
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