Final investment decision taken to build first Dutch LNG terminal in RotterdamRotterdam | press release
- Gasunie and Vopak have taken a final investment decision to build first Dutch LNG terminal with an annual throughput capacity of 9 billion cubic meters
- Estimated all inclusive project cost of around EUR 800 million
- First customers of Gate terminal are DONG Energy, EconGas and Essent
- DONG Energy, Essent and OMV GAS INTERNATIONAL acquire a minority equity stake of 5% each
N.V. Nederlandse Gasunie (Gasunie) and Koninklijke Vopak N.V. (Vopak), strategic partners in Gate terminal, today announce that the final investment decision has been taken to construct a Liquefied Natural Gas (LNG) import terminal in Rotterdam.
The terminal will have an initial throughput capacity of 9 billion cubic meters (bcm) per year and will consist of three storage tanks and one jetty. The annual capacity can be increased to 16 bcm in the future.
The tanks will have a net capacity of 180,000 cubic meters each and the jetty will be suited to accommodate LNG carriers ranging from 65,000 to the biggest carriers.
The terminal is expected to be fully operational in the second half of 2011.
The total project cost is estimated at around EUR 800 million. A substantial part of this investment will be financed externally by means of a project financing arrangement based on the credit profile of Gate terminal. The financing is expected to be completed in the first half of 2008.
The first customers to have signed long term throughput agreements with Gate terminal are DONG Energy from Denmark, EconGas from Austria and Essent from the Netherlands. These customers have each committed to an annual throughput of 3 bcm. As part of the agreement DONG Energy, Essent and OMV GAS INTERNATIONAL (as major shareholder of EconGas) will each acquire a 5% equity stake in Gate terminal, whilst the independent character of the terminal is safeguarded.
Gate terminal will be a safe and clean LNG facility with four main functions:
- the receipt of LNG from special LNG carriers;
- the buffering of LNG between the points of receipt and outlet;
- the regasification of LNG into natural gas and
- the delivery of natural gas into the transmission network for the Dutch and north western European markets.
John Paul Broeders, Chairman of the Executive Board of Vopak and Marcel Kramer, Chairman of the Executive Board of Gasunie, jointly commented: “This terminal is an important addition to the Dutch infrastructure for energy supply and transport. Our customers require an additional entry point for natural gas. By combining the unique experience and skills of our two companies in natural gas transport, LNG technology, gas and liquids storage and marine terminalling, we created a competitive win-win solution.
With the continuous increase in demand and a decrease of production of natural gas in northwest Europe, the Gate terminal helps to fill the gap and will become an important independent distribution hub. The fact that our launching customers Dong Energy, EconGas and Essent have signed throughput agreements with us proves that the anticipated interest in the market for this state-of-the-art LNG terminal is there.”
Ulco Vermeulen, Managing Director of Gate terminal: “We are excited that we have received all required permits and have succeeded in realising the first LNG terminal in the Netherlands together with our customers. I am confident Gate terminal will attract additional interest as a delivery point, which will enable us to expand the terminal.”
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