Gate terminal, the first LNG import terminal in the Netherlands, has signed a EUR 76 million (USD 95.4m) financing agreement with the European Investment Bank (EIB) and four other banks for the expansion of the Liquefied Natural Gas (LNG) break bulk infrastructure and services at the Gate terminal in the Port of Rotterdam.
The investment in this break bulk infrastructure, first announced on July 3, 2014, is expected to boost the use of LNG as a cleaner alternative transportation fuel in the Netherlands and Northwest Europe. The new infrastructure will be located next to the Gate terminal. Since 2011 the terminal enables overseas LNG import into Europe which enhances gas supply diversification and increases the security of supply.
The new financial agreement is an addition to the existing EUR 750 million (USD 941.8m) long term debt financing program originally established in 2008.
The construction of the new break bulk infrastructure is scheduled to start later this year. Commissioning of the facility and commencement of the first services are scheduled for the first half year of 2016. Gate terminal will be expanded with an additional harbour basin, financed by the Port of Rotterdam that enables LNG distribution for small scale use with a maximum capacity of 280 berthing slots per year.
The new break bulk facility will continue the further development of the terminal into a hub, from where LNG can be re-exported to other parts of Europe and around the world.
The expansion of the financing facility will have a maturity in line with the existing financing which expires at the end of 2029. The European Investment Bank will finance half of the loan and the syndicate of four banks will finance the other half supported by an additional guarantee facility.
The project is key to facilitate LNG storage and to secure LNG supply in Northwest European ports, such as Gothenburg. The maritime connection between Rotterdam and these ports is regarded as a part of the EU ‘motorways of the sea’ concept and has therefore been selected for co-financing under the European Union’s TEN-T program.