Dutch LNG terminal operator drops Port of Rotterdam plans

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Mar. 12 -- Dutch LNG terminal operator 4Gas has dropped plans to construct a regasification terminal in the Port of Rotterdam after failing to reach agreements with customers on long-term supply contracts.

Dutch and German utility firms are not willing to commit to take capacity, said 4Gas Chief Operating Officer Joost Droge, who added that the company had no further plans for projects in the Netherlands.

Droge said 4Gas and the Port of Rotterdam had agreed to cancel the so-called LionGas project, which would have competed with the Gate LNG facility now under construction by Vopak and Gasunie.

In 2006, 4Gas secured a land use agreement with the Port of Rotterdam Authority for leasing two adjacent plots of prime development land at the mouth of the port. 4Gas also received a permit from Rotterdam to construct the LionGas LNG terminal on the two plots.

No less important, 4Gas said the Port Authority also agreed to invest €40 million in developing an LNG-dedicated harbor basin at the site.

“The developments keep the LionGas project on target to start construction in 2007 and becoming fully operational in 2010,” 4Gas said at the time, adding that the LionGas terminal would help “secure the supply of natural gas to Northwest Europe and the position of the Port of Rotterdam as major energy port.”

Droge said changes in the LNG market since the agreement to build that terminal had influenced the decision to scrap the Rotterdam plant, which he said would have cost €600-700 million.

Despite the setback in Rotterdam, Droge said 4Gas had started to focus on the Mashal LNG import terminal it is working on at Port Qasim in Pakistan.

Recent reports say that the US’s Overseas Private Investment Corp. and the World Bank’s International Financial Corp. have committed to provide financing to 4Gas for setting up the Mashal facility.

“We have received initial indication of funding commitments of $370 million—$220 million from OPIC…and $150 million from IFC,” said one 4Gas official.

Other 4Gas officials say the project will make use of a 170-acre site at Khiprinwala Island at Port Qasim. On completion, the LNG facility is eventually expected to import of some 14 million tonnes/year of LNG.

Sui Southern Gas Co. will be the buyer of the LNG, and GDF Suez has emerged the winner with an agreement to supply 2.75 million tpy under an initial 6-year arrangement with the possibility of a further 1.5 million tpy over a 20-year period.

According to other reports, Royal Dutch Shell PLC may also supply 1 million tpy over a 6-year period that would be expanded to 2.5 million tpy for an additional period of 14 years.

In addition to the Mashal LNG project, other 4Gas projects include Dragon LNG in Milford Haven, Wales; the MapleLNG project at Nova Scotia, Canada; and the Vista del Sol project in Corpus Christi, Tex.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Alaska LNG project partners file resource reports with FERC

02/12/2015 A series of draft environmental and socioeconomic reports for the Alaska LNG project have been submitted to the US Federal Energy Regulatory Commis...

Australia Pacific LNG receives first gas at Curtis Island

02/12/2015 The Origin Energy Ltd.-led Australia Pacific LNG (APLNG) has reached a major milestone with first gas arriving at the group’s LNG plant on Curtis I...

InterOil wins arbitration over rights dispute with Oil Search

02/11/2015 The International Chamber of Commerce arbitration panel in London has found in favor of InterOil Corp. in its battle with Oil Search Ltd. over pree...

Study finds FLNG scheme ‘viable’ for Pandora field development

02/11/2015 A recent study has found that Cott Oil & Gas Ltd’s plans to use a floating LNG (FLNG) vessel for development of Pandora gas field in the Gulf o...

OGJ Newsletter

02/09/2015

International news for oil and gas professionals

Inpex starts development drilling at Ichthys field

02/04/2015

Inpex Corp. has started development drilling in Ichthys gas-condensate field in the Browse basin, about 200 km offshore Western Australia.

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

Live Oak LNG to build Calcasieu Ship Channel liquefaction, export site

02/03/2015 Live Oak LNG LLC, a subsidiary of Parallax Energy LLC, Houston, will invest $2 billion to develop a 5-million tonne/year liquefaction plant and LNG...

Woodside gets NEB approval for British Columbia LNG exports

02/02/2015 Woodside Energy Holdings Pty. Ltd. has received approval from Canada’s National Energy Board on its application for a 25-year natural gas export li...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected