The energy supplier EnBW wants to purchase at least three billion cubic meters of liquefied natural gas (LNG) annually via the planned LNG terminal in Stade.

EnBW and the operator Hanseatic Energy Hub signed a corresponding declaration of intent, as both companies announced on Thursday.

The terminal in Stade should be ready from 2026 and will have a planned regasification capacity of twelve billion cubic meters per year in the final stage.

LNG plays a central role in fuel diversification for power generation.

“We therefore made a very specific decision in favor of Stade as the import terminal.

The project has a high degree of technical, approval-related and commercial maturity,” said Georg Stamatelopoulos, EnBW board member responsible for sustainable generation infrastructure.

He named the short connection distance to the German gas transport network and the "zero emissions concept" as plus points.

LNG is frozen at minus 162 degrees, transported in liquid form by ship, landed, heated, "regasified" and then fed into the networks.

Since the process waste heat from the nearby industrial and chemical park is to be used to heat the LNG in Stade, the terminal does not release any CO2 during operation.

Two further terminals are planned in Germany

EnBw is Stade's first major customer.

HEH spoke of a "strong anchor customer".

In addition to the intended gas purchase volume, talks are also being held about "extraordinary cooperation".

A company spokeswoman declined to give details.

In addition to Stade, LNG terminals are also planned in Wilhelmshaven and Brunsbüttel.

Both locations have been explicitly confirmed by the federal government.

The shareholders of the Stader Hanseatic Energy Hub are the gas infrastructure operator Fluxys (Belgium), the Partners Group (Switzerland) and the Buss Group from Hamburg.

HEH plans to submit the permit documents for the LNG terminal and port before Easter 2022.

According to HEH, at maximum capacity, around ten percent of Germany's gas requirements could be covered via Stade.

800 million euros in investments are planned for the project directly on the Elbe on the premises of the chemical group Dow Chemical.

In addition, there are around 150 to 200 million euros for public port facilities.

Germany currently purchases liquefied natural gas from other European terminals.