Czech Republic agrees with Germany to lease part of LNG terminal capacity near Hamburg

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The Czech Republic has signed an agreement to lease part of the capacity of the LNG terminal under construction in the city of Stade near Hamburg (in northern Germany). The capacity of the leased part will be 2 billion cubic meters of gas per year, according to a statement by Prime Minister Petr Fiala, Report informs referring to Czech media.

“The CEZ energy holding signed a 15-year agreement with the operator of the LNG terminal under construction in Stade to lease part of the capacity with the possibility of further extending the lease to 25 years. The terminal, located on land, should be ready in 2027. The Czech Republic will receive 2 billion cubic meters of gas in year, which is more than 25% of its annual needs. Currently, the CEZ holding, on behalf of the Czech Republic, leases part of a floating LNG terminal in the Netherlands, where its share is 3 billion cubic meters of gas per year,” he noted.

According to Fiala, in this way another step has been taken to ensure the energy security of the republic.

The total capacity of the LNG terminal in Stade is 13.3 billion cubic meters of gas. In the future, the terminal can be converted to import and process climate-neutral ammonia, which, in turn, can be used to produce environmentally friendly hydrogen.

The construction of the LNG terminal is being carried out by the German company Hanseatic Energy Hub.