Shell Signs Gibraltar LNG Supply Deal

Thursday October 29, 2015

After Shell Gas and Power (Shell) earlier this month expressed intentions to supply Gibraltar's ship to ship liquid natural gas (LNG) bunkering operation, Her Majesty's Government of Gibraltar (HMGoG) says it has signed a Heads of Agreement with the company that initially authorises Shell to supply LNG to Gibraltar's new LNG power plant, IHS Maritime reports.

"Royal Dutch Shell's proposals surpassed the [two] competing bids in meeting the Gibraltar government's expectations…as assessed by international experts," the government said.

Arjan Stavast, Shell's Business Development Manager for Europe, announced earlier this month that the company has been in negotiations with the Gibraltar government about supplying LNG to the territory, as well as making Gibraltar into an LNG bunkering hub.

Over the next decade the energy major is also looking to develop strategic LNG bunkering hubs for the Mediterranean in Malta.

"Gibraltar is already among the top five global bunkering locations and it makes sense to site LNG bunkering in the same location," said Stavast.

Commenting on Gibraltar's plans for offshore LNG bunkering, Stavast added, "having an LNG bunkering vessel means that you are not restricted to one port and the Gibraltar hub could serve neighbouring Algeciras as well."

Last week, Gibraltar clarified that its plans for LNG bunkering as being an offshore activity.