Fluxys LNG, Brussels, is to launch a detailed study into building a second jetty at the Zeebrugge liquefied natural gas terminal, in Belgium, with the aim of enabling regasification ships to moor.
Belgium's Exmar is prepared to book long-term capacity with Fluxys LNG, and the two companies have signed a Memorandum of Understanding setting out their agreement. Zeebrugge would be the first liquid natural gas terminal in the world allowing both standard LNG ships and regasification ships to moor.
"Enabling reception of regasification ships would further strengthen the role of Zeebrugge as a crossroads for Western European natural gas flows and contribute to diversification of sources, security of supply and liquidity of the natural gas market," Pascal De Buck, Fluxys Commercial Director, said.
Fluxys expects twice as many ships to unload at the terminal in the first half of 2009 compared with the first half of 2008.
"This is partly the result of the terminal's first capacity enhancement last year. A second jetty would serve as an attractor for additional LNG shipping traffic," Mr De Buck said.
"Natural gas can be moved in any direction from Zeebrugge," Nicolas Saverys, CEO of Exmar, said.
"To the Zeebrugge Hub short-term market, to the Belgian market, to all neighbouring markets, and to markets further afield. This makes Zeebrugge an outstanding location for our regasification ships to unload," he added.
Standard LNG ships unload their cargo into storage tanks at a terminal, where it is then regasified and injected into the grid. Regasification ships also transport LNG, but they regasify it on board and then inject the gas directly.
Exmar has three regasification ships in its fleet, with four more currently under construction.
Reception of regasification ships at the terminal requires a second jetty in the LNG-dock as well as a pipeline and ancillary infrastructure. The first phase of the project is to study the technical and economic feasibility of the project including safety aspects.
The MoU results from the market consultation launched by Fluxys LNG in late 2007 to assess the level of interest in additional capacity at the LNG terminal. Various LNG players, including Exmar, expressed their non-binding interest in additional capacity.
Fluxys LNG is also in consultations with other interested customers.
