Shell in terminal expansion deal to boost LNG fuel for transport
Jul 3, 2014
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.
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