Shell to buy capacity in Gate LNG terminal

April 24, 2007
Shell Energy Europe BV has agreed to take a maximum of 4 billion cu m of capacity rights in the proposed Gate LNG regasification terminal in Rotterdam under a heads of agreement signed with the project operator, Gate Terminal BV.

Uchenna Izundu
International Editor

LONDON, Apr. 24 -- Shell Energy Europe BV has agreed to take a maximum of 4 billion cu m of capacity rights in the proposed Gate LNG regasification terminal in Rotterdam under a heads of agreement signed with the project operator, Gate Terminal BV.

The European Commission has granted an exemption to third-party access for the project, signaling that the terminal will probably start up in mid-2010 as planned.

The Gate terminal will have a regasification capacity of 8-12 billion cu m/year, depending on initial market demand, and could later expand to 16 billion cu m/year.

"The boards of Gate Terminal BV and Port of Rotterdam have agreed to a long-term lease of 50 years for 23 hectares on the Maasvlakte, which is expected to be formally approved shortly by shareholders of the Port of Rotterdam," said Royal Vopak, a Gate Terminal shareholder.

Electricite de France has also reserved 3 billion cu m/year of regasification capacity at Gate LNG, and it holds a 10% capital stake in the terminal.

Gate Terminal is a joint venture of NV Nederlandse Gasunie and Koninklijke Vopak NV.

Contact Uchenna Izundu at [email protected]