EMEA News
Gibraltar and Shell Sign Deal for LNG Supply and Regasification Unit
Moving closer to a possible deal for liquefied natural gas (LNG) bunkering at the Port of Gibraltar, Her Majesty's Government of Gibraltar (HMGoG) Friday signed an agreement with Royal Dutch Shell plc (Shell) for the construction of a small regasification unit, and the supply of LNG for power generation in Gibraltar, local media reports.
Operated by Shell subsidiary Gasnor, the regasification unit is also expected to see the construction a berth suitable for a small LNG carrier.
It is reported that the LNG carrier will conduct supply operations at night in order to minimise disruption to the neighbouring port, airport, and residential areas.
"With today’s signing, Gibraltar has led by example and put itself at the forefront of a cleaner, flexible energy system that will reliably and consistently deliver power to the people of Gibraltar," said Maarten Wetselaar, Director of Shell Integrated Gas.
"This project will draw on Shell’s combined expertise across 50 years of excellence in innovation, technology and safety. It proves once again that small-scale projects can deliver big benefits and bring more clean-burning gas to the markets that want it."
Construction of the regasification unit is said to be slated to start at the end of 2016, while commissioning and the first LNG delivery is expected to occur before the start-up of the power plant - set for the second half of 2017.
In October, HMGoG said it has signed a Heads of Agreement with Shell for the supply LNG to Gibraltar's new LNG power plant, which is currently under construction.
