Uchenna Izundu
International Editor
LONDON, Aug. 11 -- E.On Ruhrgas AG has agreed to send 3 billion cu m/year of regasified LNG through the Gate LNG terminal in the Netherlands starting in second-half 2011 and will acquire a stake in the facility.
E.On will market the gas in northwest Europe. This is the fourth supply agreement that the Gate LNG project partners have secured; others include Dong Energy, EconGas, and Essent, which have committed to a total throughput of 12 billion cu m/year.
As part of its agreement, E.On Ruhrgas will acquire a 5% equity stake in the Gate facility, which is the first LNG import terminal under construction in the Netherlands.
"With the supply of LNG by E.On Ruhrgas, the total capacity of 540,000 cu m of the three envisaged tanks has been fully contracted," said Vopak NV, a Gate LNG terminal partner. "To accommodate the additional incoming LNG carriers, Gate terminal will build a second jetty and install the required additional equipment," Vopak reported.
It will pay for the new terminal facilities by raising additional external financing within the coming months. With the expansion, total throughput capacity would rise to 16 billion cu m/year from its initial capacity of 12 billion cu m/year.
Gasunie and Vopak together hold an 80% stake in the terminal, with each of the four supply partners holding 5%.
Contact Uchenna Izundu at [email protected].