Gibraltar, Shell Ink LNG Supply Agreement

The Government of Gibraltar and oil and gas major Shell have signed an agreement for the supply of liquefied natural gas (LNG), which includes the construction of a small regasification unit that will receive, store and re-gasify the LNG arriving by ship for use in Gibraltar’s adjacent gas-fired power plant, already under construction.

The parties said that the regasification unit will be operated by Gasnor, a 100% Shell-owned subsidiary with over ten years of operational experience in LNG for marine and small scale LNG in North Western Europe, Wilhelmsen Ships Service informs.

The LNG will be stored before being warmed up to its original gaseous state and then piped to the power plant. The unit will also include a berth for a small LNG carrier that will supply the LNG at night, minimising disruption to the neighbouring port, airport and housing estates.

Additionally, there is potential for LNG bunkering operations in the future, following the appropriate environmental assessments and safeguards.

Following the recent approval of an Environmental Impact Assessment report, construction of the regasification unit is planned to start towards the end of 2016 with commissioning and first delivery of LNG expected to take place ahead of the start-up of the power plant, expected during the second half of 2017.

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