ConocoPhillips has signed a commercial agreement to secure additional regasification capacity in Europe at the Gate LNG terminal in the Netherlands.
The 15-year performance agreement of approximately 1.5 million tonnes per annum (mtpa), or 70.63 billion cubic feet (two billion cubic meters) equivalent, begins in September 2031 and “secures access to this important market for the company’s growing global LNG. [liquefied natural gas] portfolio,” ConocoPhillips said in a recent press release.
ConocoPhillips said the deal further complements its LNG resource positions in Qatar and Australia, the dam and equity in Sempra’s recently sanctioned Port Arthur LNG Phase 1 project on the US Gulf Coast, the regasification agreement at German LNG terminal announced in 2022 and gathering agreements at Mexico Pacific’s Saguaro LNG export facility on Mexico’s west coast announced in August.
“Adding capacity to the Gate LNG terminal fits well with our efforts to provide reliable, low-carbon energy to Europe from a highly competitive LNG supply,” said Bill Bullock, executive vice president and chief financial officer of ConocoPhillips. “Expanding our LNG footprint with deals like this further enhances a balanced, diversified and attractive portfolio as we move forward with our global LNG strategy.”
Gate Terminal BV, a joint venture between Vopak and Gasunie, is an LNG hub in the port of Rotterdam that contributes to the supply of natural gas to the Netherlands and North-West Europe. According to the company’s website, Gate Terminal is the first Dutch LNG import terminal and has been operational since 2011. The terminal has an annual production capacity of 423.8 billion cubic feet (Bcf), or 12 billion cubic meters of gas per year, which covers approximately one third of national gas consumption. The terminal has three storage tanks, three docks, three truck loading bays and an area where LNG is converted to gas.
Gate Terminal has made the final investment decision to expand its storage and regasification capacity, consisting of a new LNG storage tank of 6.36 million cubic feet (180,000 cubic meters) and an additional capacity of regasification of 141.3 Bcf (4 billion cubic meters) annually. The new capacity is already leased under long-term commercial agreements and is expected to become operational in the second half of 2026, according to a previous press release from the company.
Gate Terminal said the total investment is approximately $373.4 million (€350 million). The company plans to finance approximately 15 percent of the expansion with equity and approximately 85 percent with project financing without recourse to existing commitments. Financing for the project is expected to be completed by the end of 2023. The capital contribution from each of the shareholders will be approximately $27.7 million (€26 million) with withdrawals expected in the coming years, according to the statement
“The investment in this new depot is part of a wider package of proposed and already implemented measures to increase LNG import capacity in the Netherlands,” said Gasunie board member Hans Coenen. “This is necessary to compensate for the loss of Russian natural gas and reduce the shortage of natural gas in the European gas market. In addition to expanding LNG import capacity, Gasunie continues to accelerate the energy transition. For example, through the construction of a national hydrogen network and the conversion of import terminals. We will also continue to focus on green gas, heat transport and CO2 capture and storage.”
“We are excited to build on our successful partnership with Gasunie,” said Vopak CEO Dick Richelle. “This investment fits well with Vopak’s strategy to grow in LNG infrastructure. We are proud to develop and operate open access and reliable infrastructure, as this plays an important role in the security of energy supply.”
“Now that all the pieces are in place, we are pleased to be able to begin construction on this major expansion today,” Gate Terminal CEO Jarmo Stoopman.
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