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Shell in Terminal Expansion Deal To Boost LNG Fuel For Transport

Shell is the launching customer of new, dedicated liquefied natural gas (LNG) for transport infrastructure announced today by the Gas Access To Europe (Gate) terminal.

The Gate terminal is a joint venture of Gasunie, Vopak and OMV at the port of Rotterdam in the Netherlands. Shell has committed to buy capacity from the Gate terminal, which has enabled this investment in the terminal expansion. The new LNG for transport infrastructure, called a ‘break bulk’ terminal, includes the construction of a new jetty. The new jetty will increase availability of LNG as a transport fuel for vessels in northwest Europe. 

Maarten Wetselaar, Shell’s Executive Vice President, Integrated Gas, said: “We are pleased to have reached this agreement. The collaboration between Gasunie, Vopak, the port of Rotterdam, and Shell will provide security of supply of LNG for marine and road transport customers in northwest Europe, through dedicated and scalable infrastructure. LNG is a viable option for fuelling cleaner and more sustainable transport. We believe LNG will form a bigger part of the transport fuel mix in the future, and this project demonstrates our confidence in LNG as a fuel option.”

Rotterdam is a key location for global shipping, port and bunkering operations, giving the Gate terminal an advantaged position to serve customers in the marine and road sector. The new, dedicated break bulk terminal is expected to be operational in H1 2016. It will be positioned alongside the central Gate terminal, where LNG currently arrives via large carriers from around the world.

When operational, the new break bulk terminal will receive gas in its liquid form from the central terminal by pipeline, and break it down into smaller quantities for distribution. Previously, all the LNG arriving in to the port was regasified for the power and industrial sector, and also re-exported.

To serve marine customers in the port of Rotterdam, Shell intends to charter a specialised LNG bunker vessel to facilitate ship to ship transfer operations, and also deliver LNG to secondary distribution terminals outside the port area.

For road customers, the existing truck-loading station at the Gate terminal will be used to distribute LNG fuel to an initial Shell network of up to seven LNG truck refuelling stations in the Netherlands. The first of these Shell truck refuelling stations is planned to open later this year in the Rotterdam area.

This agreement with the Gate terminal strengthens Shell’s position in the strategic European natural gas market and underpins the company’s strength in LNG as Shell marks its 50th year in LNG. 

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Notes to Editors

  • Shell has a strong, diverse and flexible LNG portfolio and is one of the world’s largest LNG producers and marketer.
  • The new infrastructure at the Gate terminal is known as a “break bulk” terminal as it permits liquefied natural gas to be broken down into smaller quantities for distribution.
  • Shell intends to charter a specialised LNG bunker vessel in the port of Rotterdam with a capacity of around 6,500 cubic metres to facilitate ship to ship transfer operations.
  • We expect LNG will form a bigger part of the sustainable transport fuel mix in the future. This is consistent with the EU Clean Power for Transport directive as well as the recent Dutch government fuel vision report.
  • The proposed initiative builds on the acquisition of Gasnor, the Norwegian company which provides LNG fuel for ships and industrial customers in Norway and in Benelux.
  • Shell’s support helped launch Greenstream, the world’s first 100% LNG-powered barge to carry goods along Europe’s River Rhine.
  • Shell also has projects to develop LNG as a transport fuel in North America and recently opened its first truck refuelling station with TravelCenters of America.

Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges.  Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com.

Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them.

These expressions are also used where no useful purpose is served by identifying the particular company or companies. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence.

The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments".

The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.

Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.

Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions.

These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation):

(a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions;

(i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions.

All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2013 (available at www.shell.com/investor and www.sec.gov ).

These factors also should be considered by the reader.  Each forward looking statement speaks only as of the date of this announcement, 3 July 2014.

Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.

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