EnBW doubles LNG purchase commitment at planned Stade terminal

FRANKFURT (Reuters) - German utility EnBW on Tuesday said it will double its annual purchasing pledge to 6 billion cubic metres (bcm) of liquefied natural gas (LNG) from a terminal planned at the Elbe river port of Stade.

Germany is developing LNG import facilities to help wean itself off of Russian piped gas.

A final investment decision for Stade's Hanseatic Energy Hub (HEH) is due in mid-2023.

Managers say the planned land-based hub could be ready from 2026 with a regasification capacity of 13.3 bcm per year.

"LNG is important for increasing the gas supply in Germany in the interim the time towards the energy transition and to build the bridge to green energy supply," EnBW said in a statement.

"All bookings made include the opportunity to a switch to ammonia as a hydrogen-based energy source at a later date," it added.

Stade, which in January received pledges by state-controlled Sefe to buy 4 bcm of LNG annually from 2027, therefore has now booked 80% of its production capacity.

Stade is backed by Belgian gas transport networks group Fluxys, Swiss investment company Partners Group, German logistics group Buss and chemicals company Dow.

Ahead of the land-based facility, a German state-funded floating LNG terminal (FSRU) is expected at Stade before the end of 2023.

It is one of six such vessels at four locations that will tide German industry and consumers over until fixed terminals are built.

(Reporting by Vera Eckert; editing by Rachel More and Jason Neely)