MOSCOW (MRC) -- Dow Inc., the world's petrochemical major, has announced it has signed a definitive agreement to take a minority stake in the Hanseatic Energy Hub GmbH (HEH) and is working with HEH's current members to advance Germany's capabilities to import supplies of liquefied natural gas (LNG), bio-liquified natural gas and synthetic natural gas through the construction of an import terminal, as per the company's press release.
The HEH consortium, which now includes Dow, Fluxys, Partners Group and Buss Group, is planning to build, own, and operate an import terminal for liquified gases on Dow's Stade, Germany industrial park. This zero-carbon emission terminal is to be built by 2026 and will 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 metres (bcm) of natural gas per year, the import terminal supports the Joint Statement between the European Commission and the United States on European Energy Security by satisfying up to 15% of Germany's current natural gas demand. The agreement would also allow the United States to meet nearly 25% of its goal to export 50 bcm of natural gas annually to Europe by 2030. Additionally, the terminal will repurpose off-gas heat at the Dow site for the carbon emissions-free regasification of the liquefied gas back to its gaseous state.
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. 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.
The project is subject to final investment decision, which is expected by 2023.
As MRC informed before, earlier this month, Dow and Plastogaz SA announced a strategic investment which will help simplify the process of converting plastic waste to feedstock and provide another carbon-efficient option to keep plastic waste out of landfills and the environment. The collaboration marks another milestone in Dow’s ongoing mission to protect the climate and close the loop on plastic waste.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased significantly.
Dow combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people.