Hanseatic Energy Hub announced that the construction of Germany’s first land-based liquefied natural gas (LNG), at the inland Port of Stade, began on Friday. The terminal is expected to be operational in 2027.

The project on Elbe River is part of Germany’s efforts to diversify energy sources following a sudden fall in Russian gas imports after Moscow’s invasion of Ukraine.

The terminal will have two LNG tanks, each with a capacity of 244,000 cubic metres. It will also be ready for ammonia as Germany and neighbouring countries aim to replace natural gas in the future with green hydrogen or its derivatives to reduce carbon dioxide emissions.

In a press release, HEH's Chief Executive Jan Themlitz stated that "after six years of planning and permits, the construction phase has now begun."

The Czech utility CEZ and the German utility EnBW, as well as importer SEFE, have all committed to buying 90% of Stade's annual capacity of 13,3 billion cubic meters.

HEH has said that all customers will have the option of switching their contracts in the future to hydrogen-based sources such as ammonia.

Enagas, the Spanish gas grid operator, will take over operational responsibility for the terminal.

The first floating regasification ship (FSRU) was delivered to Stade in March for testing operations. It will be joined by three other vessels at Wilhelmshaven and Brunsbuettel, as well as Lubmin, for regasification up until 2027. (Reporting by Riham Alkousaa)