Enagás joins Hanseatic Energy Hub as industrial partner and co-shareholder

Hanseatic Energy Hub (HEH) has selected Enagás, the Spanish transmission system operator (TSO), as its industrial partner for the operation of the liquefied gases terminal in Stade, Germany.

Enagás joined the HEH as an industrial partner and co-shareholder with a 10% stake, subject to compliance with the conditions inherent to this type of transaction, to contribute with its experience in CO2-neutral operation of LNG terminals.

According to HEH, the Spanish TSO strengthens the existing project consortium consisting of the founding shareholder, the Hamburg-based Buss Group, the Partners Group (on behalf of its customers) and the industrial partner Dow. The previous minority shareholder Fluxys will sell its shares due to a strategic refocusing.

The consortium added that the parties have agreed not to disclose the exact terms of the agreements until the final investment decision is taken throughout 2023.

“With the Hanseatic Energy Hub in the Hamburg metropolitan region, we are developing an import terminal that will secure Germany’s supply of LNG and green gases and at the same time prepare for the market ramp-up of hydrogen,” said Johann Killinger, HEH Managing Director and owner of Buss Group. “Enagás not only shares our vision but also contributes with comprehensive technical expertise to help us make it a reality quickly and reliably.”

Arturo Gonzalo, CEO of Enagás, commented: “This new agreement is an important milestone in meeting the European objectives of security of supply and decarbonisation and a relevant step forward in the company’s compliance with its Strategic Plan. Enagás will contribute with its experience in the development of a hydrogen-ready infrastructure that will be key for Germany.”

In its first phase, from the end of 2023, HEH will serve as the site of Dynagas’ Transgas Force, one of the five floating storage and regasification units (FSRU) chartered by the German government.

The plan is to have LNG and green energy sources such as bio-LNG and synthetic natural gas (SNG) imported via the emission-free terminal from 2027. The planned regasification capacity is 13.3 billion cubic metres per year. At the same time, the terminal, port, industrial park and connection infrastructure are designed to enable conversion to ammonia as a hydrogen-based energy source in a modular fashion.

The planned investment volume for the terminal by HEH is around €1 billion. Back in April, a consortium led by global EPC specialist Técnicas Reunidas S.A. was commissioned to develop the land-based terminal for liquefied gases, subject to HEH’s final investment decision. Other consortium partners are the FCC Group and Entrade GmbH.

Moreover, the commercial marketing of the Hanseatic Energy Hub has been largely completed with 10 billion cubic metres per year of long-term LNG capacity already contracted with key LNG customers such as EnBW and SEFE, and the project is now pushing ahead with the parallel ramp-up of hydrogen on an ammonia basis. Among other things, a market test is to clarify whether there is a demand to build an additional, smaller ammonia tank before the large tanks are converted.