Dow Inc will take a minority stake in a consortium constructing a liquefied natural gas (LNG) import terminal in Germany as the chemicals maker tries to diversify its energy supplies following the Russian invasion of Ukraine.
The investment in the Hanseatic Energy Hub GmbH comes after the Biden administration pledged the supply of 15 billion cubic metres of LNG to the European Union this year following the invasion.
The import terminal has a projected regasification capacity of 13.3 billion cubic metres (bcm) of natural gas per year and would satisfy up to 15% of Germany's natural gas demand, Dow said in a statement on Monday.
The terminal 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, it said.
The project is subject to a final investment decision, which is expected by 2023.
(Reporting by Rithika Krishna in Bengaluru; Editing by Aditya Soni)